Binance, the renowned cryptocurrency exchange, recently disclosed its decision to eliminate several key liquidity pools from its Binance Liquid Swap platform. The move, set to take effect by December 6, will witness the removal of vital pools such as Polygon (MATIC), Solana (SOL), Tron (TRX), Shiba Inu (SHIB), Bitcoin Cash (BCH), Avalanche (AVAX), and Polkadot (DOT).
The Binance Liquid Swap function allows users to participate as liquidity providers within pools, earning transaction fees and BNB rewards while engaging in seamless crypto token swaps. This change signifies a strategic shift in Binance’s pool offerings, with a focus on optimizing liquidity and trading experiences for its users.
The announcement, made on November 29, highlighted the imminent discontinuation of significant liquidity pools. Among those being removed include AVAX/USDT, BCH/BNB, BCH/USDT, DOT/BNB, MATIC/BTC, SHIB/DOGE, SOL/BNB, TRX/USDT, and USDC/USDT, alongside several others.
Starting from December 4 at 04:00 UTC, users will be unable to add liquidity to the above-mentioned pools. Additionally, individuals holding positions in these pools will automatically receive their deposited crypto assets in their spot wallets by December 6.
User Implications and Binance’s Strategy
Binance emphasized the periodic review of listed liquidity pools, aimed at consolidating liquidity, reducing slippage, and offering better transaction prices. This strategic evaluation ensures an enhanced trading experience for users on the platform.
Previously, Binance had removed major liquidity pools, including Bitcoin (BTC), Ethereum (ETH), BNB, Cardano (ADA), Polygon (MATIC), Solana (SOL), Shiba Inu (SHIB), and Dogecoin (DOGE), aligning with its strategy to discontinue BUSD stablecoin support by February 2024.
In October, the exchange also delisted XRP, Fantom (FTM), Optimism (OP), Decentraland (MANA), and 10 other liquidity pools, signifying a recurring pattern of Binance’s liquidity management strategy.