Key Functions: Sigma Money

Minting bnbUSD

• Users can open a position by supplying BNB, WBNB, or slisBNB as collateral.

• The protocol automatically calibrates leverage and bnbUSD issuance to uphold overall system stability.

Rebalancing

• To minimize liquidation risk, the system continuously rebalances positions toward safe collateral ratios (see Risk Parameters).

• Rebalancings are carried out automatically by keepers.

Liquidation

• If a position remains undercollateralized despite rebalancing, the protocol initiates liquidation by redeeming the associated bnbUSD.

• This mechanism ensures the solvency and integrity of bnbUSD at all times.

• Liquidations are carried out automatically by keepers.

Stability Pool

• The Stability Pool serves a dual role: offering yield opportunities to participants and actively maintaining the bnbUSD peg.

• It facilitates bnbUSD stability through arbitrage-based interventions and acts as a buffer against volatility.