📈Collateral Ratio

Impact on Users

For Minters

Lower CR = Less BNB needed

• More B4NK required as collateral

• Cheaper if you already hold B4NK

• Useful when xBNB is above peg

Higher CR = More BNB needed

• Less B4NK required as collateral

• Better if you want to minimize B4NK exposure

• Typical when xBNB is under peg

For Redeemers

Lower CR = Less BNB returned

• More B4NK returned instead

• Less attractive for redemptions

• Incentivises holding xBNB

Higher CR = More BNB returned

• Less B4NK returned instead

• More attractive for redemptions

• Incentivises redeeming when under peg

Viewing Current CR

The current Collateral Ratio is always visible on:

• Minting page

• Redemption page

• Dashboard/Stats page

Pro Tip: Monitor CR trends to optimize your minting and redemption timing for maximum efficiency.

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Next Steps: Learn about the price stability mechanism that works with CR to maintain xBNB peg