Paxos holds all cash balances in U.S.-insured depository institutions, while cash equivalents are held in "U.S. As of June 30, 2022, 96% of the assets backing Binance USD were held in cash and cash equivalents, with the remaining 4% invested in U.S. In an effort to maintain transparency and trust, Paxos regularly discloses the assets backing BUSD. This extensive ecosystem growth has propelled BUSD to become the third-largest stablecoin by market capitalization, following Tether ( USDT ) and USD Coin ( USDC ). Top DeFi protocols like Venus, Aave, Yearn.Finance, and more also allow users to earn yield on their BUSD. įor users interested in yield farming and lending BUSD, it is available on centralized platforms like Binance. BUSD is available on leading DEXs, including PancakeSwap, Uniswap, 1inch, Curve Finance, Ellipsis, MDEX, SushiSwap, and 0x. Platforms and services like travel booking site Travala, payment gateways Moonpay and Banxa, payment APIs Wyre, and multi-currency payment services ivendPay and Paylot also support BUSD. Top wallets like MetaMask, Trust Wallet, Trezor, and Zapper now allow users to hold BUSD. The BUSD ecosystem has grown exponentially in recent years, driven by increased user adoption and support from wallets, platforms, services, DEXs, and centralized exchanges (CEXs). Utilizing BUSD as cross-collateral in futures trading. Using BUSD as collateral and loan assets in Decentralized Finance (DeFi) platforms. Paying for goods and services using BUSD. Trading BUSD on various exchanges and decentralized exchanges (DEXs). Transferring digital dollars (BUSD) globally in minutes at a low cost and on the blockchain. Some of the most notable use cases include: BUSD Use Cases and Ecosystem GrowthīUSD offers a wide range of use cases that capitalize on its price stability. On the Ethereum network, BUSD uses the Proof-of-Stake (PoS) consensus, while on the BSC network, it employs the Proof-of-Staked-Authority (PoSA) consensus. This consensus mechanism varies depending on whether the BUSD token is on the Ethereum or Binance Smart Chain (BSC) network. To ensure network security, BUSD employs a consensus mechanism, which relies on validators to agree on transaction validity and maintain the blockchain. The use of blockchain and smart contracts provides numerous advantages over traditional tokens, including increased security, transparency, and efficiency. Smart contracts enable the token's core functionalities, such as minting, redemption, and transfers. The technology behind BUSD revolves around blockchain, the digital ledger that securely records transactions, and smart contracts, self-executing agreements with the terms directly written into code. While the situation was quickly resolved, it highlights the importance of staying informed about the latest developments affecting the token and its ecosystem. In March 2023, the price of BUSD briefly deviated from its 1:1 peg due to rumors surrounding its founder, CZ, who was reportedly the subject of a potential red notice from Interpol. Since its launch, BUSD has seen tremendous growth and adoption, expanding its utility and value within the digital asset ecosystem. The founding team includes Changpeng Zhao (CZ), the CEO of Binance, and Charles Cascarilla, the CEO of Paxos. History and Founding Teamīinance USD was created through a partnership between Binance, one of the world's largest cryptocurrency exchanges, and Paxos, a leading provider of blockchain infrastructure solutions. Designed as a digital fiat currency, BUSD is issued on the Ethereum blockchain as an ERC-20 token and also supports the BEP-2 standard. Launched in September 2019, BUSD is a 1:1 USD-backed token approved and regulated by the New York State Department of Financial Services (NYDFS). Binance USD (BUSD) is a stablecoin that combines the stability of the US dollar with the versatility and innovation of blockchain technology.
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