{"id":10,"date":"2025-11-17T09:55:18","date_gmt":"2025-11-17T01:55:18","guid":{"rendered":"https:\/\/demos.themeansar.com\/contentup\/lite\/?p=10"},"modified":"2025-12-04T17:26:46","modified_gmt":"2025-12-04T09:26:46","slug":"with-depegging-events-on-the-rise-busd-redefines-stablecoin","status":"publish","type":"post","link":"https:\/\/www.benpay.com\/blog\/index.php\/with-depegging-events-on-the-rise-busd-redefines-stablecoin\/","title":{"rendered":"With Depegging Events on the Rise, BUSD Redefines “Stablecoin”"},"content":{"rendered":"\n

Introduction<\/strong><\/h2>\n\n\n\n

With a series of recent depegging-related security incidents, the entire crypto industry has entered its own version of a “butterfly effect.” From stablecoins losing their peg to liquidity pools triggering chain reactions, risks are rapidly spreading across protocols. A sense of unease is permeating the market, bringing previously dormant issues back into the public eye and prompting the question: In an on-chain world full of uncertainty, what is a “true stablecoin<\/strong>“?<\/p>\n\n\n\n

Stablecoins are not only a medium of on-chain transactions\u2014they are the “foundation” of the on-chain economic system. When market trust is challenged, only stablecoins with transparent mechanisms and solid backing can remain steady amid volatility. This is precisely the value of BUSD<\/strong> on the BenFen chain<\/a>: it does not rely on complex hedging strategies or high-leverage yields; instead, it provides a dollar-pegged token<\/strong> with zero depegging risk through a rigid-redeem cross-chain lock-and-mint model.<\/p>\n\n\n\n

<\/div>\n\n\n\n

I. What Is BUSD: The Native USD-Pegged Token on the BenFen Chain<\/strong><\/h2>\n\n\n\n

BUSD is a USD-pegged token minted 1:1 through cross-chain USDC\/USDT.<\/strong><\/p>\n\n\n\n

Using the BenFen native cross-chain bridge<\/a> mechanism, it maintains a strict 1:1 peg to USDT\/USDC<\/strong> and other mainstream USD stablecoins transferred from other chains<\/strong>, achieving rigid redemption and constant value. This makes it a highly liquid, low-risk settlement unit within the system\u2014the core pegged asset of the BenFen chain, designed for on-chain payments and value circulation. It is a fundamental component of the PayFi network. Unlike traditional pegged coins issued at the contract layer, BUSD is not a yield-bearing stablecoin<\/strong>, but an on-chain mapping of the U.S. dollar, enabling seamless switching between DeFi and real-world payments. Natively supported by the BenFen public chain, BUSD is the “first-class citizen” of the ecosystem\u2014users can even pay gas fees directly with BUSD, creating a true stablecoin-native payment experience.<\/p>\n\n\n\n

<\/div>\n\n\n\n

II. How BUSD Works<\/strong><\/h2>\n\n\n\n

BUSD’s stability comes from cross-chain mapping and a real-time mint-and-burn model<\/strong>.<\/p>\n\n\n\n

When users transfer mainstream stablecoins such as USDT or USDC across chains to the BenFen chain, the system will automatically generate an equivalent amount of BUSD on the chain. When a user chooses to exchange BUSD back for external assets, the corresponding amount of BUSD will be burned in real time<\/strong> on the chain, while the native assets will be released from the bridge and returned to the user’s address. The operation logic is:<\/p>\n\n\n\n