Peg Protection

The protocol employs multiple sophisticated mechanisms to maintain bnbUSD's peg at $1.00 under all market conditions.

Stability Pool as Dynamic Peg-Keeper

The Stability Pool functions as an algorithmic market maker by accepting both bnbUSD and USDT deposits. When bnbUSD trades below $1, the pool automatically purchases it from the market. Conversely, if bnbUSD trades above $1, the pool sells it for USDT to restore equilibrium.

➡️ Ensures continual bnbUSD stability through automated arbitrage operations in the dedicated bnbUSD/USDT liquidity pool.

Strategic Operational Restrictions During Depeg Events

During depeg scenarios, the protocol implements immediate restrictions on new position creation. This decisive action prevents additional bnbUSD minting, effectively reducing selling pressure on the stablecoin when its price is already compromised.

➡️ Eliminates additional selling pressure on bnbUSD when trading below its target peg.

Funding Fees

When depeg events occur, the protocol activates targeted funding fees for all positions, thereby requesting capital inflows necessary for peg restoration.

➡️ Provides Stability Pool participants with elevated real yields during critical periods, strengthening the peg recovery mechanism.

Guaranteed bnbUSD Redemption

Users retain the perpetual right to acquire bnbUSD from secondary markets and redeem it for precisely $1 worth of collateral, subject only to nominal protocol fees. This creates a powerful economic incentive for arbitrageurs to restore the peg during any deviation.

➡️ bnbUSD maintains an architecturally hard-coded peg through its fundamental redemption mechanism, ensuring price stability by design.