Binance-Peg BSC-USD
USDT on BNB Chain is a centralized stablecoin backed by USDT reserves custodied by Binance.
Risk Rating
What we like
Provides easy on-ramp and off-ramp to convert your USD into digital dollars that is backed 1:1 by underlying reserves.
What we like less
Greater centralization as Binance custodies the deposited USDT and controls the minting and redemption of USDT on BNB Chain. USDT also has questionable collateral backing and Tether controls the minting and redemption of USDC. Open to censorship as Tether can blacklist any USDT address at will.
What it means for you
USDT 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
- Website
- Community
- Contract address
- Contract address
- Asset Type: ERC-20
Key Metrics
- Market Cap: $87.3B
- Fully Diluted Valluation: $87.3B
- FDV / MC: 1
- Ranking inside Exponential (among stables): #1
- Circulating Supply: 87,323,273,301
- Total Supply: 87,323,273,301
- Volume (24H): $46.8B
- ATH: $1.32 (07/24/2018)
- ATL: $0.57 (03/02/2015)
Risk Assessment
Asset Strength
USDT is a large-cap asset with questionable collateral reserves. 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.
USDT is a stablecoin that consistently trades within 10bps of its peg to USD, which makes it a great store of value.
Asset Tokenomics
USDT has an uncapped supply but has inflation control or burn mechanisms in place. USDT on BNB Chain is backed 1:1 by USDT reserves held with a licensed custodian (Paxos). USDT is fully redeemable for its USD reserves, providing an effective mechanism to retain the peg to $1.
Asset Volatility
USDT is a stablecoin that consistently trades within 10bps of its peg to USD, which makes it a great store of value. USDT is fully redeemable for its USD reserves, providing an effective mechanism to retain the peg to $1.
Dependencies
Binance-Peg BSC-USD has no dependencies.
Things to know about BSC.USD
Who invented USDT?
USDT launched on the Ethereum mainnet in July 2014 by Brock Pierce, Craig Sellars and Reeve Collins. Tether is one of the earliest stablecoins created that pioneered the fiat-collaterlization model that is widely used today. Tether based out of Hong Kong is the sole entity responsible for creating and redeeming tokens as well as maintaining the 1:1 reserve backing.
How does USDT work?
USDT are backed 1:1 by USD reserves held with a licensed custodian (Tether). The process of minting USDT tokens requires a KYC registration process with Tether. After receiving approval from Tether’s compliance team, the user sends USD to Tether’s bank account. Tether then uses the USDT smart contract to mint an equivalent amount of USDT. Lastly, the newly created USDT are sent to the user’s on-chain address, while the deposited USD are held in reserve. The process for redeeming USDT back into USD is the same process but reversed.
How secure is USDT?
USDT is a centralized stablecoin that relies on a proof-of-reserve system to ensure its reserve assets match its circulating supply. However, the token has faced significant controversy since its inception due to its failure to provide audited reserve attestations by an independent auditor and its reserve reports does not specify the exact underlying assets. The reserve composition of USDT is considered riskier as it consists not only of cash and cash equivalents but also other assets and receivables from loans made by Tether to third parties. Further, USDT has the ability to «blacklist» any of its associated addresses at will. When a USDT address is blacklisted, it can no longer receive USDT and all of the USDT controlled by the address can no longer be trasnferred on-chain.
Understanding BUSD and Binance-Peg BUSD
BUSD is a stablecoin pegged to the US Dollar (USD) and issued by Paxos with branding support from Binance. It is approved by the New York Department of Financial Services (NYDFS), a regulator known throughout the finance industry for applying exceptionally rigorous standards to the entities and products it oversees. The asset is always available for purchase and redemption at a rate of 1 BUSD to 1 USD.
BUSD is designed with three key areas in mind: high-quality reserves, audits, and regulation. Well-designed stablecoins should only be backed by cash and short-term US Treasuries with a maturity of fewer than 90 days. To ensure maximum transparency, monthly reserve attestation reports & monthly holding reports are provided, allowing anyone to verify that BUSD is 100% backed by cash or cash equivalents.
In accordance with strict custody regulations enforced by the New York state regulators, Paxos’ BUSD reserves are only held in FDIC-insured, bankruptcy-remote bank accounts or US Treasury instruments.
Customer assets are thus protected from bankruptcy and kept separate from corporate funds. As the assets are fully segregated, users do not need to worry about the issuer becoming insolvent — the assets will return to their rightful owners even in that unlikely event.
Along with Paxos issuing BUSD on the Ethereum blockchain, Binance offers a wrapped BUSD token, called Binance-Peg BUSD, that runs on several other blockchain networks, including BNB Chain, Avalanche, and Polygon.
How does Binance-Peg BUSD work on multiple chains?
BUSD is natively issued on Ethereum, thus limiting its usage outside of the Ethereum ecosystem. In order to extend BUSD’s utility to other blockchains, Binance offers a wrapped version of the stablecoin, Binance-Peg BUSD, which is designed to track the value of the original, ERC-20 BUSD at a 1:1 ratio. “Wrapping” tokens is blockchain lingo for creating versions of the original asset that are transportable to other chains for the sake of increasing interoperability and the interconnectedness of the digital asset space. Normally, the value of wrapped tokens is secured by locking the collateral of the original asset, which is the case with Binance-Peg BUSD.
There is $23.4 billion worth of BUSD in circulation as of November 15, 2022, according to Etherscan , including 5.3 billion BUSD locked on the Ethereum network . At the same time, roughly 5.3 billion Binance-Peg BUSD is issued on different networks, including 4.85 billion on BNB Chain, 9.5 million on Avalanche, and 4 million on Polygon. That the amount of the native, ERC-20-based BUSD locked on Ethereum is close to the amount of Binance-Peg BUSD in circulation is not a coincidence. As the below section explains in more detail, to create a wrapped BUSD token, Binance must first lock a regular BUSD on its native blockchain. Anyone can visit the proof of assets webpage for an on-chain check.
How to ensure Binance-Peg BUSD is fully backed by reserves?
How can users be sure that the value of Binance-Peg BUSD tokens is equally protected? That’s simple: each Binance-Peg BUSD token that Binance mints correspond to a BUSD token held in reserve by its issuer – Paxos. BUSD (ERC-20) and Binance-Peg BUSD holders can swap their tokens between the blockchains freely. In sum, each Binance-Peg BUSD token represents the value of a native BUSD custodied outside of Binance, meaning that its value is secured by the same robust protection mechanisms that make BUSD one of the most reliable stablecoins on the market.
Disclaimer: BUSD is issued on Ethereum by Paxos and regulated by the NYDFS. Binance provides the pegged token service to lock BUSD on Ethereum and issues an equivalent amount of Binance-Peg BUSD on other networks. Check out the proof of assets (Proof of Collateral for B-Tokens) for more details. Please note that Binance-Peg BUSD is a Binance product. It is not issued by Paxos nor regulated yet by the NYDFS.
USDT
Текущая цена USDT (USDT/USDT) на Pancakeswap V2 (BSC) составляет 0,254 $, цена выросла на 0 % за последние 24 часа. По сообщениям, объем торгов за 24 часа составляет 0,00 $, при общем количестве сделок — 0. Адрес контракта USDT/USDT — 0x662ffde21ea2efd237509e93c474560876f0ba42, с полностью разводненной оценкой (FDV) в размере 807,74 млн $ и пулом ликвидности в размере 0,00071 $.
Какая сегодня ликвидность в пуле USDT/USDT?
Текущая ликвидность пула USDT/USDT с адресом контракта 0x662ffde21ea2efd237509e93c474560876f0ba42 равняется 0,00071 $.
Binance-Peg BSC-USD (USDT) is it the same as normal USDT ?
I test a test transfer/withdraw $10 worth of USDT from Pionex to ledger. In Pionex, there are 4 options to transfer / withdraw USDT. They are TRC20, ERC20, BEP20(BSC), HECO. The fees on BEP20 is the lowest 40 cents. TRC30 charges $1. ERC20 charges $10 for transferring/withdrawing $10 USDT so no go. HECO is under maintenance. So I did the BEP20. I installed the Binance Smart Chain in my ledger only takes 5k space. I got the receive address and withdraw $10 USDT from Pionex to ledger BSC address, it does show up very quickly as $9.60 but it doesn’t show as USDT. It shows as Binance-Peg BSC-USD $9.60. Is it safe as normal USDT though? If Binance doesn’t collapse and I guess yes it will always be $1 Binance-Peg BSC-USD to $1 USDT. If we don’t trust BSC or TRC network, the only other way to go is on ETH network but charges more fees. I have never withdraw large amount of USDT from other exchange yet but I mainly use Pionex and ledger. Can ledger staff tell me if that $10 fees are per each time but not pre amount of USDT being withdraw? I guess its safer to keep my USDT on ETH network, am I correct?
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