What Is bDollar Protocol?

2021-03-19 02:00:00 · 465 views · 3 min read

 

bDollar ($BDO) is an algorithmic stablecoin running on Binance Smart Chain with completely decentralized on-chain governance.

 

 

bDollar is designed with an innovative solution that can adjust its supply deterministically to move the price of the token in the direction of a target price of $1 to bring programmability and interoperability to DeFi.

 

 

Inspired by Basis Cash and its predecessors, bDollar Protocol is a multi-token protocol that consists of three tokens: 

  • $BDO, the algorithmic stablecoin.

  • bDollar Shares, or $sBDO, which holders can claim BDO inflation when the network expands.

  • bDollar Bonds, or $bBDO, which can be purchased at a discount rate when the network is in contraction and can be redeemed for BDO when the network comes to its deflationary phase and price goes below $1.

Then how bDollar mechanisms works?

 

 

When $BDO trades below the $1 target price, token holders can purchase bDollar Bonds with an extra discount and Bonds will be burnt to reduce the circulating supply when users redeem bDollar with a 1:1 ratio. In case of redemption, an amount of $BDO will be minted to equal the bDollar Bonds that have been redeemed. Important to note is that Bonds have no expiry after purchase.

 

 

When $BDO price is above the $1 peg, the token supply will have to expand to push it back down to 1$ and the contract will allow the redemption of the bDollar Bonds. When the price of bDollar continues trading above the $1 target price after bond redemption, the contract mints an appropriate amount of new $BDO and this will be distributed to the Boardroom Stakers.

 

 

It also has its unique algorithm: The epoch duration is 6 hours. The maximum rebase/expansion amount is 3%. It has no expiry for Bonds.

 

 

To participate in the protocol, you can visit the bDollar Banks dashboard, and select your preferred pool. It currently supports BUSD, DAI, CAKE and BFI.

Want to know more about this type of stablecoins? Check more algorithmic stablecoin here: Algorithmic Stablecoins.

 

 

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