↪️Depositing and Withdrawing

Depositing & Withdrawing

Learn how to mint new xBNB tokens and redeem them back to collateral.

Minting xBNB by Depositing BNB

Create new xBNB tokens by depositing collateral based on the current Collateral Ratio.

Minting Formula

To mint 1 xBNB:

• BNB Required: CR × 1 BNB

• Required B4NK is provided from B4NK treasury

Example Calculations

CR = 90%

To mint 1 xBNB:

• BNB needed: 0.90 BNB

• 0.10 BNB worth of B4NK provided from B4NK treasury

To mint 100 xBNB:

• BNB needed: 90 BNB

• 10 BNB worth of B4NK provided from B4NK treasury

CR = 75%

CR = 95%

Minting Process

1

Check Current CR

View the current Collateral Ratio on the minting page.

2

Prepare Collateral

Ensure you have the required amount of BNB in your wallet.

Pro Tip: You only need BNB - B4NK will automatically provide the required B4NK for you.

3

Initiate Minting (Transaction #1)

Submit first transaction to deposit collateral and initiate minting.

4

Collect xBNB (Transaction #2)

Submit second transaction to collect your newly minted xBNB tokens.

Minting Fees

• Fee: 1% of minted value

• Collected in: BNB

• Distributed to: Staked and locked B4NK holders

What Happens to Collateral?

When you mint xBNB:

• BNB portion: Held in protocol treasury as collateral

• B4NK portion: Burned, removing tokens from circulation

Withdrawing BNB from xBNB

Convert your xBNB back to BNB at any time.

Redeeming Formula

When redeeming 1 xBNB:

• BNB Returned: CR × 1 BNB

• B4NK Returned: (1 - CR) × 1 BNB worth

Example Calculations

CR = 90%

Redeeming 1 xBNB returns:

• BNB: 0.90 BNB

• B4NK: 0.10 BNB worth of B4NK

Redeeming 100 xBNB returns:

• BNB: 90 BNB

• B4NK: 10 BNB worth of B4NK

CR = 75%

CR = 95%

Redemption Process

1

Check Current CR

View the current Collateral Ratio to know what you'll receive.

2

Initiate Redemption (Transaction #1)

Submit first transaction to burn your xBNB and initiate redemption.

3

Collect Collateral (Transaction #2)

Submit second transaction to collect your BNB and B4NK collateral.

Redemption Fees

• Fee: 2% of redeemed value

• Collected in: BNB

• Distributed to: Staked and locked B4NK holders

What Happens During Redemption?

When you redeem xBNB:

• xBNB: Burned, removing tokens from circulation

• BNB portion: Released from protocol treasury to you

• B4NK portion: Newly minted and sent to you

Two-Step Security

Flash Loan Protection

Both minting and redeeming require two separate transactions. This prevents flash loan attacks since flash loans must be repaid within the same transaction.

Why Two Steps?

Security: Prevents attackers from exploiting the protocol with flash loans

Time Lock: Collateral is time-locked between transactions

User Safety: Additional confirmation step prevents accidental large transactions

Frequently Asked Questions

Can I mint xBNB with only BNB?

Yes! Use the Zap feature on the minting page. The protocol will automatically provide the required B4NK amount from the treasury.

How long between the two transactions?

You can complete the second transaction immediately after the first confirms. There's no required waiting period, but you must complete both transactions.

What if I only complete the first transaction?

Your collateral will be held in the contract. You can complete the second transaction at any time to collect your minted xBNB or redeemed collateral.

Can I cancel after the first transaction?

No, once you've completed the first transaction, you must complete the second to receive your tokens. This is a security feature.

Do fees apply to both transactions?

The 0.50% protocol fee is applied during the first transaction. The second transaction only costs gas fees.

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Next Steps: Learn about the collateral ratio used in B4NK mechanics