Attention please! New token list and smart yield wallet coming your way. And this time it’s a stablecoins!
From June 15, 2022, Binance USD (BUSD) will be available in the SwissBorg app along with its Smart Yield wallet. With just one tip you can easily achieve a return of up to 3.5% pa!
Don’t know BUSD or our Smart Yield Wallets? Read on for more information!
What is BUSD?
Launched on September 5th, 2019, BUSD is a 1:1 USD backed and heavily regulated stablecoin.
Behind BUSD is a partnership between Binance, the largest cryptocurrency exchange, and Paxos, a regulated blockchain infrastructure platform.
Together with BUSD, both companies have previously created other cryptocurrencies. For Paxos, it was dubbed the gold-backed stablecoin PAX gold (PAXG) while it was for Binance BNB. And while BUSD is definitely not the first stablecoin, it is the third largest by market cap, right behind the well-known one USDT And USDC. This is largely due to the trust and reputation enjoyed by both Binance and Paxos, as well as the seal of approval bestowed on BUSD in 2020 by the New York State Department of Financial Services – a department responsible for regulating financial services and -products with the reputation of being responsible is very strict.
Adding to the regulatory aspect of BUSD are the monthly attestation reports published by Paxos, which provide insight into the matched supply of BUSD tokens and the underlying USD.
Note that there are two versions of the BUSD token – BUSD (the ERC-20 token) and Binance-Peg USD (the BEP-20 version issued on the BNB chain). Although both are known as BUSD, it is important not to confuse the two as sending assets over the wrong protocol can result in the loss of the tokens.
Unlike BUSD, Binance-Peg BUSD is not issued in partnership with Paxos or regulated by the New York State Department of Financial Services.
How does BUSD work?
The mechanism for keeping BUSD pegged is relatively simple compared to other types of stablecoins. Each BUSD is exchangeable for 1 USD from the reserves. By sending your BUSD to Paxos, they burn your tokens and provide you with the fiat currency. This mechanism keeps supply and reserves in a constant 1:1 ratio.
The use of BUSD
The BUSD token is part of many partnerships, including the one with BitPay that enabled Microsoft, Amazon, Takeaway.com, and other BitPay merchants to accept BUSD.
Popular crypto wallets like MetaMask, Trust Wallet, Trezor, Zapper and more support BUSD as well as various DEXes, CEXes, payment gateways, payment APIs and multi-currency payment services.
The safety of BUSD
Based on recent events surrounding stablecoins, we should reiterate that even assets labeled as “stable” come with their fair share of risks. We addressed this in our Risk assessment of UST and other stablecoins as well as ours USDT deep dive.
Fortunately, the risks are low in the case of BUSD as it is one of the few stablecoins that is regularly audited by third parties and is subject to strict regulations.
Earn a return on BUSD
SwissBorg users who deposit their BUSD into the Smart Yield Wallet can earn up to 3.5% pa and rest assured that their funds are segregated from SwissBorg’s operating funds and therefore safe.
In addition, the BUSD Smart Yield Wallet takes care of the complicated yield farming tasks while you can earn daily with BUSD.
The advantages of the BUSD Smart Yield Wallet
Once you deposit as little as $10 you can put your BUSD to work and enjoy the following benefits:
- Smart Yield Strategy Optimizer – a tool that monitors and ranks investment opportunities, ensuring your assets are only invested in the lowest-risk platforms.
- Higher cumulative yield over time – a mechanism that increases your yield every day, giving you more income.
- No minimum investment period.
- Monthly Smart Yield Reports – a transparent overview of Smart Yield performance.
Premium members also receive a yield boost of 1.25x, 1.5x, 1.75x or 2x depending on their premium account type, as well as a discount on the exchange.
In case you missed it, we just released it new premium tiers to make these benefits more accessible. So hurry up and give them a try because current market conditions make becoming SwissBorg Premium a bargain!
Deposit BUSD into the SwissBorg app
If you want to deposit BUSD into the SwissBorg app, you need to follow the steps below:
- Open the SwissBorg app and tap on “Deposit”.
- In the Deposit Crypto section, find and tap on BUSD.
- Copy your BUSD address.
- Send your BUSD to the copied address using the BEP-20 (Binance Smart Chain) protocol.
Important: Make sure the protocol you are using is the BEP-20 (Binance Smart Chain) protocol; Otherwise the deposit will not be successful.
How to start using the BUSD Smart Yield Wallet
Activating the BUSD Smart Yield Wallet is just a few taps away with the SwissBorg app. If this is your first time using a smart yield wallet, just follow these steps to complete the process:
- Update your app to the latest version
- Deposit, buy or trade BUSD
- On the portfolio screen, tap BUSD
- Scroll down and tap on the Yield Wallet card
- Tap Top up
- Choose how much you want to add to your return wallet
- Follow the prompts to start earning a daily income!
Note that while there is no minimum investment period, redemptions occur every 24 hours. Once you request funds to be redeemed, they will be deposited into your active account by 8:00am CET the next day.
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