🌑xBNB Token

xBNB Token

xBNB is our Synthetic Token pegged to the value of 1:1 of a BNB on Binance Smart Chain.

Key Features

Peg Mechanism	1:1 peg to BNB value
Stability	Price stability achieved via smart contracts
Collateral	Time-locked collateral for redemptions
Yield	Additional yield opportunities for BNB holders

What Makes xBNB Unique?

Fractional-Algorithmic Design

xBNB uses a hybrid collateralisation model that combines:

• BNB Collateral: Provides intrinsic value backing

• B4NK Collateral: Algorithmic component for capital efficiency

The ratio between these two types of collateral adjusts dynamically based on market conditions, maintaining the peg whilst optimising capital efficiency.

Price Stability

xBNB maintains stability via arbitrage. When xBNB trades off peg, arbitrageurs can profit by either:

• Under peg: Buy cheap xBNB and redeem for full BNB value

• Over peg: Mint xBNB at BNB value and sell at premium

This mechanism ensures xBNB remains stable without relying on centralised price feeds or governance intervention.

Use Cases

For BNB Holders

Hold BNB exposure while earning additional yield through xBNB liquidity provision and farming.

For Traders

Use xBNB as a stable BNB-equivalent in trading strategies without moving your actual BNB holdings.

For Liquidity Providers

Provide xBNB liquidity in stable pairs with reduced impermanent loss risk.

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Next Steps: Learn how to mint and redeem xBNB