This is my entry for the Leo outreach contest.

If you are new to this site (or even if you are not) make sure that you make an entry as it is a good way to get views for your work and get some upvotes. There is over 500 Leo up for grabs as a prize and even if you don't win you will still probably get upvotes for your work

Here is the link for more details:
https://leofinance.io/hive-167922/@leofinance/write-about-your-favorite-ethereum-project-and-earn-crypto

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Any crypto company can learn a lot from Binance over the years. They were one of the only coins that actually went up during the bear market over the last two years and showed how a burn model can be used to run a successful business even when people were scared to get into crypto.

Look at this chart:

![Screenshot 20201106 at 11.22.33.png](https://images.hive.blog/DQmZc9MWoSatxsmerLAKpYv9fYr4haNdCpJQjwxbfSN63u9/Screenshot%202020-11-06%20at%2011.22.33.png)

There was pumps in 2018 when the rest of the market was crashing. Binance managed to hit ATHs for its coin in 2019 which the rest of the market has yet to do. It has held pretty well over the years and is a top ten coin in the marketplace.

They do well for two reasons:

- They run their crypto business like a business and know how important it is to have revenue coming in.
- They are constantly innovating.

There new project is a great idea to get users into Defi that has lowered the risks attached to a lot of projects. Not only will you be holding not a coin that has a good chance of doing well in the market (BNB) but you will be yield farming several new coins and be earning interest on your BNB at the same time. 

### What Is A Launch pool

https://www.youtube.com/watch?v=RILhdBWyusw

A launch pool is a savings account on Binance where you will farm new coins with as long as your money is staked in the account. This means you will get interest for your coins just for holding them in this account plus you will get new coins added to your account. It is better than an airdrop as you are getting coins over-time and it will encourage longer staking periods. 

But what really makes the Launchpool stand out is that there are multiple coin drops happening at the same time! This means you are getting a basket of coins for staking one coin in one pool. This really improves the value as you are getting a variety of drops with new coins being added. Even if you forget about your investment you will be getting coin after coin added to your account.

Right now I think they are up to 7 or so with Hard Protocol launching their pool on the 3rd of November. 

### Why Do People Give Away Coins To Binance

It is simple, Binance is one of the biggest exchanges and being on Binance not only brings attention to your project but helps to bring liquidity to your market. When you try to get on exchanges this is the one you want to aim for. With the launchpool you will get exposure for your project and people can start to trade it right away.

https://www.youtube.com/watch?v=mhUKpqm1lLk

### BNB Coin

The BNB coin is a pretty solid coin to hold onto. Even if you do not get any coins that do well in the launchpool you will still be making interest on your coin for staking it in the savings account. It has a lower risk of a lot of other coins as it has a stable project with a high amount of revenue coming in so you do not need to constantly worry as you would with some defi projects. It is crypto so there is still a lot of risk but BNB is on the lower end of the scale.

### Set It And Forget It For Passive Income

The Launchpool really is set it and forget it. I put some BNB in it for a couple of coins and just found out they are now up to 7. This isn't a project I'm hugely invested in but I do wish I had more stake in it. The only reason I have not bought BNB when it was cheaper is because it didn't pay dividends but now it has a great model that gives you multiple rewards.

### What Leo Can Learn From This

Airdrops are too quick. This model of dripping coins into people who are staking a coin encourages long term staking and a slower release of a new coin. I would like to see Leo try something like this in the future for their staked coins. I don't want to copy it as we can do our own thing but there is a lot to learn from it. We are already powering up to use our Leo Power on the site, imagine if we were getting extra coins on top of it just for staking them. And with our site being a blog site we can reward users to make articles for new projects. This way they will get promotion and our users will make more money. It is win win. 

This project is one of the smartest ones that I have seen for defi and really makes it easy to drop in your money and earn passive income while working on other things. It may not be as shiny as other defi products that are promising high gains but it is a lot safer and with multiple coins going to holders it can really add up. The only downsize is it is really popular so you will be getting less coins as there is a lot of other people staking.

I recommend you check it out if you are looking to get involved in defi for long term without worrying about the high risks. I don't own enough for it to make me risk but it is a really good idea that shows what  cryptocurrency can be.

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/hive-167922/@whatageek/defi-with-lower-risk-and-multiple-returns-the-binance-lauchpool)