The strategic investment aims to strengthen the development of truthless decentralised applications (dApp) based on the BNB Chain, formerly known as the Binance Smart Chain.

“Binance Labs is always into nurturing and making investments in promising DeFi projects. We believe that there are solutions and teams to build products that can contribute to building a trustless DeFi industry even in a turbulent market,” said Binance co-founder Yi He.

Binance and Ambit Finance to Work Together

Binance Labs said it would collaborate with Ambit Finance on several projects, including launching innovative security and risk control applications. The two companies also plan to partner with other projects in the BNB ecosystem.

According to the official announcement, Ambit will unlock new functionalities for BNB Chain users by developing a “yield-bearing BUSD-based stablecoin designed to provide sustainable yield throughout all market conditions.”

Similarly, the protocol would build a super app that would integrate existing DeFi capabilities like collateralised lending and innovative solutions for domains like under-collateralized margin lending and structured products for financial institutions.

Speaking on the latest development, Tyler Z., investment director at Binance, noted Ambit could bring mass adoption of DeFi to the BNB Chain and that users can enjoy the upcoming suite of products tailored to bring advanced lending and risk control to users in the BNB ecosystem.

Binance Labs Launches $500M Ecosystem Fund.

Earlier this year, the investment arm of Binance launched a $500 million investment fund dedicated to promising blockchain projects with growth potential. Shortly after, the firm deposited an undisclosed amount of funds to the DeFi protocol, PancakeSwap, to promote its native cryptocurrency, CAKE, which traded at around $44 at its peak in 2021.

Last month, Binance Labs made a strategic investment in a Parisian sports gaming platform dubbed Ultimate Champions (Unagi) to support its business offerings. The sports company plans to bring Web 3 sports gaming to a broader audience with a fun, accessible, and free-to-play experience.