Binance Removing XRP, FTM, and 10 Other Liquidity Pools

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The world’s largest cryptocurrency exchange, Binance, has announced the removal of several liquidity pools from its Binance Liquid Swap platform. This strategic move affects major digital assets including XRP, Fantom (FTM), Optimism (OP), and Decentraland (MANA), among others. The decision aligns with Binance’s broader plan to phase out support for the BUSD stablecoin by early 2024.

Binance Liquid Swap is a decentralized finance (DeFi) feature that enables users to provide liquidity across various token pairs. In return, participants earn transaction fees and additional rewards in BNB, Binance’s native cryptocurrency. The platform simplifies token swapping while offering passive income opportunities for liquidity providers.

Why Is Binance Removing These Liquidity Pools?

On October 10, Binance officially confirmed the discontinuation of select liquidity pools as part of its ongoing efforts to streamline services and enhance trading efficiency. Affected pools include:

These changes reflect Binance’s commitment to optimizing liquidity distribution across its ecosystem. By consolidating trading volume into fewer, more active pools, the exchange aims to reduce slippage, improve price stability, and deliver a superior user experience.

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The removal process began on October 13 at 04:00 UTC, after which users could no longer deposit assets into the affected pools. All remaining liquidity positions were automatically redeemed and transferred to users’ spot wallets by October 17.

Users had the option to manually withdraw their assets before October 17, 04:00 UTC. After this deadline, Binance calculated redemptions based on each pool’s prevailing asset ratio at the time of closure. This ensured fair and transparent distribution of returned funds.

Strategic Shift: Phasing Out BUSD Support

A key driver behind this update is Binance’s roadmap to fully retire BUSD (Binance USD) by February 2024. As regulatory scrutiny around centralized stablecoins intensifies, Binance is proactively adjusting its product offerings. The delisting of BUSD-based liquidity pools marks a critical step in this transition.

This shift encourages users to migrate toward more resilient and widely adopted stablecoins like USDT and DAI. It also signals Binance’s long-term vision of building a more decentralized and compliant financial infrastructure.

By focusing on high-performance pools, Binance enhances capital efficiency and minimizes fragmentation across its DeFi offerings. This benefits both casual traders and experienced yield farmers who rely on predictable returns and low volatility.

Impact on Liquidity Providers

For users actively participating in these pools, the change requires timely action to avoid unexpected rebalancing or missed opportunities. While automatic redemption protects users from permanent loss, proactive management allows for better control over exit timing and asset allocation.

Liquidity providers should consider reinvesting their returned assets into alternative pools with strong volume and competitive reward rates. Platforms like Binance continue to support numerous active pairs involving BTC, ETH, BNB, and USDT—offering viable alternatives for generating yield.

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Additionally, users are advised to monitor official Binance announcements for future pool additions or upgrades. Staying informed helps investors adapt quickly to evolving market conditions and platform updates.

Core Keywords and Market Relevance

This update touches on several critical themes in today’s crypto landscape:

These keywords reflect growing interest in decentralized finance mechanisms, exchange-led asset management policies, and the transition away from regulated stablecoins. As users seek clarity on where to allocate capital post-BUSD, educational content around alternative earning methods becomes increasingly valuable.

Frequently Asked Questions (FAQ)

Q: Why did Binance remove the XRP/BUSD liquidity pool?
A: Binance removed the XRP/BUSD pool as part of its broader strategy to phase out BUSD support by February 2024. The move helps consolidate liquidity into more active trading pairs and improves overall trading efficiency.

Q: What happened to my assets if I didn’t withdraw before the deadline?
A: If you held a position in any of the discontinued pools, your assets were automatically redeemed based on the pool’s composition ratio and transferred to your spot wallet on October 17.

Q: Can I still trade XRP or FTM on Binance?
A: Yes, removing a liquidity pool does not affect spot trading. You can still buy, sell, and hold XRP, FTM, MANA, OP, and other listed tokens through standard trading pairs.

Q: Are there new liquidity pools I can join?
A: Yes, Binance continuously evaluates and adds new high-demand pools. Check the Liquid Swap section regularly for updated options featuring BTC, ETH, BNB, USDT, and other major assets.

Q: How does removing low-performing pools benefit users?
A: Eliminating underutilized pools reduces market fragmentation, lowers slippage, and concentrates trading volume—resulting in tighter spreads and better pricing for all users.

Q: Will Binance introduce more changes to Liquid Swap in 2025?
A: While specific plans haven’t been disclosed, Binance regularly optimizes its DeFi products based on performance data and user feedback. Expect ongoing refinements to enhance yield opportunities and platform reliability.

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Final Thoughts

Binance’s decision to remove 12 underperforming liquidity pools underscores its focus on delivering a streamlined, efficient trading environment. While transitions like these may temporarily disrupt yield strategies, they ultimately strengthen the platform’s long-term sustainability.

As the crypto industry evolves, users must remain agile—adapting to exchange policies, regulatory shifts, and technological advancements. Whether you're a passive investor or an active liquidity provider, understanding these changes empowers smarter decision-making in the dynamic world of digital assets.