Binance-Peg BUSD Token (BNB Chain)

BUSD

BUSD is a fully collateralized stablecoin issued by Binance and backed by USD reserves held with a licensed custodian (Paxos).

Risk Rating
Good
$1.00
-0.08%
Summary
What we like
Binance-Peg BUSD is a Binance product that enables the original BUSD on Ethereum to be transferrable to other chains.
What we like less
BUSD on BNB Chain is a wrapped version of the natively issued BUSD on Ethereum. This is an additional risk vector as users must trust Binance to custody the underlying BUSD on BNB Chain in addition to the Paxos issued BUSD on Ethereum.
What it means for you
BUSD is a highly liquid instrument to hedge your portfolio in volatile market conditions and also an easy way to put USD to work for you in DeFi.
Information
Blockchain
  • BNB Chain
Key Metrics
  • Market Cap: $1.6B
  • Fully Diluted Valluation: $1.6B
  • FDV / MC: 1
  • Ranking inside Exponential (among stables): #5
  • Circulating Supply: 1,580,633,036
  • Total Supply: 1,580,633,036
  • Volume (24H): $4B
  • ATH: $1.15 (03/13/2020)
  • ATL: $0.90 (05/19/2021)
Risk Assessment
Good
Asset Strength

BUSD is a large-cap, fully collateralized asset. This asset depends on two centralized entities for custody services. This asset is exposed to the underlying risks of Binance Bridge, a protocol rated as Watch out.

BUSD is a stablecoin that usually trades within 20bps of its peg to USD, which makes it a solid store of value.

Asset Tokenomics

BUSD has a fixed supply. BUSD on BNB Chain is backed 1:1 by BUSD locked on Ethereum by Binance. Each regular BUSD (ERC-20) is backed 1:1 by USD reserves held with a licensed custodian (Paxos). BUSD is fully redeemable for its USD reserves, providing an effective mechanism to retain the peg to $1.

Asset Volatility

BUSD is a stablecoin that usually trades within 20bps of its peg to USD, which makes it a solid store of value. BUSD is fully redeemable for its USD reserves, providing an effective mechanism to retain the peg to $1.

Dependencies

Binance-Peg BUSD Token (BNB Chain) has no dependencies.

Things to know about BUSD

Who invented BUSD?

BUSD launched in September 2019 as a partnership between Binance and Paxos. Customers on Binance with USD accounts can exchange 1 BUSD for 1 USD and vice versa. BUSD is issued solely by Paxos on Ethereum.

How does BUSD work on multiple chains?

BUSD is natively issued on Ethereum, which limits is usage outside of its network. To extend its usage across multiple chains, Binance offers a wrapped version of BUSD, Binance-Peg BUSD, that is designed to track the value of the Ethereum-based BUSD on a 1:1 basis. BUSD (ERC-20) and Binance-Peg BUSD holders can freely swap their tokens between various supported chains.

How secure is BUSD on BNB Chain?

Each Binance-Peg BUSD that Binance mints is backed by a regular BUSD that is locked on Ethereum. The value of Binance-Peg BUSD is secured by locking the collateral of the BUSD. In this case, Binance locks the regular BUSD on Ethereum and then mints a corresponding amount of Binance-Peg BUSD on BNB Chain. For more details, you can check out their Proof of Assets.

BUSD Pools
PancakeSwap BTC-USD Market Making
6.01%
Yield 30d
$1M
TVL
Risk
C
Protocol
PancakeSwap
Chain
BNB Chain
Stargate USD Bridging
2.82%
Yield 30d
$806K
TVL
Risk
C
Protocol
Stargate
Chain
BNB Chain
PancakeSwap USDC-BUSD Market Making
4.81%
Yield 30d
$230K
TVL
Risk
C
Protocol
PancakeSwap
Chain
BNB Chain