Introduction
The role of Stablecoins in the crypto sector cannot be overemphasized. Cryptocurrencies rarely hold steady value given its volatile nature. Hence, the only commodity that allows values to be held in a steady manner are stablecoins. The BNB chain has doing promoting the use of stablecoins not just in the crypto sector, but in everyday life. Thus, it recently announced another campaign to encourage the use of Stablecoins in daily transactions. This project is called Gas-Free Carnival and everyone is invited to join.
Before we go into details about the carnival, here are some reasons why the adoption of stablecoins in the crypto sector is very important for overall mass adoption of cryptocurrencies.
Why Stable coins
Stablecoins do their primary work which is to hold some steady value for the user. The way cryptocurrencies fluctuate in price makes them a very risky investment apparatus. Even when new users join the crypto space, they are afraid to bring more funds into the system because they could loose its value in a blink. So with stablecoins, there is no fear of instant collape of investments or funds because the values are retained when stored in a stablecoin.
The enormous use of stablecoins in the crypto space make them such an important part of blockchain technology. Stablecoins are mainly used as a bridge between fiat currencies and other cryptocurrencies. When a user whishes to buy crypto, they often purchase a stablecoin like USDT. Then they could swap the stablecoin for other cryptocurrencies.
The defi space is perhaps where stablecoins find their largest application in the crypto space. There, they are used for investment purposes because of their steady value. In defi, there are yield farms where users lock up value in tokens and earn from the investment. There are also liquidity products. Crypto loans and other forms of defi investment are all built around the reliability in value of stablecoins. So it is not surprising to understand why the BNB chain is creating this campaign to push the use and application of Stablecoins.
Details of the gas-free carnival
BNB chain announced this carnival as part of their effort to drive the adoption and use of stablecoins. It is a massive campaign that involves other top-tier exchanges such as MEXC, Bitget and others. These exchanges including binance will remove the main barrier that scares people aware from using Stablecoins for transactions - transaction fees. So for the period of the campaign, all stablecoin transactions across participating exchanges would be feeless.
BNB chain launched this feeless campaign on September 19, 2024 and it will run through November 20, 2024. Through out the period of this campaign, users that transfer stablecoins like USDT from Binance to MEXC will pay 0.00 network fee. This means that users would not worry about paying high fees. Instead, this move will push mass adoption of stablecoins and increase transaction volumes across the campaign time.
The stablecoins that are covered for this campaign includes USDC, USDT and FDUSD. There are many blockchains where these stablecoins are traded. But since BNB are the ones sponsoring the campaign, all transactions must be in the opBNB chain or BNB Smart Chain (BSC). With the gas fees removed, BNB chain hopes to see a much high volume of transactions completed and equally a bigger number of new users adopting stablecoins. There is more to this though, here is what the organizers added:
the Gas-Free Campaign extends to stablecoin transfers via Celer cBridge, making cross-platform transactions smoother and cheaper. This zero-fee initiative is expected to boost stablecoin usage across BNB Chain’s ecosystem and provide users with a more seamless experience. source
There are some rules though that apply to this campaign and participants are expected to follow them. For example, not all stablecoin transaction amounts are accepted. For a user to benefit from the program, the minimum amount of transaction is $0.10 USDT. Each day, each participant in the campaign can only get free network transactions not more than 6 times per day.
Bitget Wallet and SafePal are some of the external exchanges that are participating in the event. BNB chain has reserved a decent amount of rewards to cover for the transactions. Each of the wallets get a total of $25,000 that will be used to cover the fees for the period of the campaign.
We're actively collaborating with additional CEXs, wallets, and bridges, with more set to join this exciting initiative soon. We also encourage other CEXs, wallets, and bridges to get involved and contribute to this expanding ecosystem contact us to learn more source
Finally
The Adoption of stablecoins is about to see an unprecedented breakthrough. This is huge and will lead to more users joining the ecosystem. If you already own wallets in these exchanges, consider taking advantage of the campaign to enjoy stablecoin transfers without having to pay expensive gas fees. You can click here to learn more about this campaign if you wish.
Note: Thumbnail is mine