What is Binance-Peg BUSD?
Binance-Peg BUSD is a stablecoin that mirrors the value of the US Dollar. It is issued by Binance and operates on the BNB Chain as a wrapped version of BUSD. The token is created by locking original BUSD tokens on Ethereum and minting an equivalent asset on the BNB Chain, ensuring it maintains a stable and reliable value.
Binance-Peg BUSD goals
The primary purpose of Binance-Peg BUSD is to extend the utility of a fiat-backed stablecoin across multiple blockchain networks, particularly the faster and more cost-effective BNB Chain. It addresses the issue of high transaction fees and slower confirmations on some networks by allowing users to transact more efficiently. Additionally, Binance-Peg BUSD is used for trading, liquidity provision in decentralized finance, and as a stable medium of exchange across various blockchain ecosystems.
Binance-Peg BUSD fondamentals
The supply of Binance-Peg BUSD is directly tied to the amount of original BUSD locked in a secure reserve, ensuring that its supply remains consistently backed. The token is issued through a minting and burning mechanism whereby tokens are created when original assets are locked and burned when they are redeemed. While specific figures are not disclosed, its market performance is measured by variables such as 312477998 BUSD and $311947623, underscoring its stability and reliability.
Marketcap
$0.31194762B
Total number of Binance-Peg BUSD
312477998 BUSD
Binance-Peg BUSD technology
Binance-Peg BUSD employs a cross-chain wrapping mechanism in which original tokens on Ethereum are locked via smart contracts while an equivalent amount is minted on the BNB Chain. This process utilizes the BEP token standard to ensure seamless compatibility with wallets, decentralized applications, and other blockchain services. The technology enables efficient, secure transfers and helps maintain a consistent peg to the US Dollar without compromising on transaction speed or cost.
Binance-Peg BUSD competitors
Binance-Peg BUSD stands out in the competitive landscape due to its deep integration within the Binance ecosystem and its robust wrapping mechanism that ensures every token is fiat-backed. Its competitive advantages include lower transaction fees, faster confirmation times on the BNB Chain, and reliable cross-chain interoperability. In comparison to other stablecoins, Binance-Peg BUSD offers enhanced efficiency and ease of use, making it a preferred option for stable transactions in the digital asset space.
Binance-Peg BUSD price history
Frequently asked questions
Binance-Peg BUSD is a stablecoin designed to reflect the value of the US Dollar. It is issued by Binance and operates on the BNB Chain as a wrapped version of BUSD. This structure ensures that every token is backed by a corresponding locked BUSD, maintaining stability and value.
The wrapping mechanism involves locking original BUSD tokens on the Ethereum blockchain through secure smart contracts. An equivalent number of Binance-Peg BUSD tokens is then minted on the BNB Chain. This process allows the token to be used across multiple networks while preserving its stable value.
Issuing Binance-Peg BUSD on the BNB Chain leverages the advantages of lower transaction fees and faster confirmations. This makes it more efficient for daily transactions and trading within the Binance ecosystem. The BNB Chain environment enhances user experience by reducing costs and improving transaction speed.
Stability is maintained by a mechanism where original BUSD tokens are locked as collateral and equivalent Binance-Peg BUSD tokens are minted. When users redeem their tokens, they are burned on the BNB Chain and the original tokens are released from reserve. This minting and burning process preserves a balanced supply linked to a corresponding fiat reserve.
Yes, Binance-Peg BUSD can be redeemed and swapped back to the original BUSD. The process involves burning the Binance-Peg BUSD tokens on the BNB Chain, which triggers the release of the locked original BUSD tokens. This ensures that the overall supply stays balanced and fully backed.
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