There’s a hot new stable coin in town and its name is BUSD…

We are excited to announce that BUSD from Binance is now available to be deposited and borrowed in Aave Protocol!

Aave has surpassed $38 Million in market size, and now Aave is the first DeFi protocol add BUSD into the money market!

BUSD is a stable coin pegged 1:1 to the US dollar, and it has received approval from the New York State Department of Financial Services (NYDFS) and is backed by reserves controlled by Paxos, experts in stable coins. The stable coin was launched in 2019 by a partnership between Paxos and Binance — purchase and redemption of BUSD must be done through the Paxos platform, but trading BUSD with other cryptocurrencies can be done on Binance Exchange.

Aave is collaborating with Chainlink to bring the BUSD-ETH oracle online, ensuring that price feeds are accurate and current. BUSD’s grand entrance to the world of DeFi is exciting for us, and we are looking forward to how BUSD will be used in features like Flash Loans or arbitrage between DEXes and CEXes. Aave Protocol offers high APY yields on deposits, with a 9.33% APY for stable coin USDT over the last 30 days, for example. Jump into Aave Protocol to start earning interest on BUSD deposits now!

Risk Assessment Summary

BUSD Risk Assessment Summary

Users are currently able to deposit and borrow BUSD in Aave Protocol, but the stable coin is not yet available for use as collateral since the asset is so new.

BUSD is backed by real US dollars, and a monthly audit attests to the consistency of the USD bank reserves versus the on-chain supply of USD. BUSD is also compliant and approved by the NYDFS.

BUSD is a stable coin, so the volatility is extremely low, and the asset does not risk price fluctuations. The trading volume for BUSD has really picked up with over $100 million worth of trades per day!

The full and in-depth risk assessment for BUSD with an update to the current assessment will be made available shortly — stay tuned!

Building Bridges

Aave is proud to find synergies in the Ethereum ecosystem. We believe that listing BUSD is building bridges between the CeFi and DeFi ecosystems, pulling together two worlds with unlimited possibilities! We do not believe in closed ecosystems, and we are thrilled to welcome Binance users on our decentralized protocol.

Learn More & Keep in Touch

To learn more about BUSD head over to the Binance webpage.

For the details on Aave Protocol, feel free to jump into our developers portal or read our whitepaper. As we mentioned, we will be releasing the full currency risk assessment soon

Be sure to follow us on Twitter for the juicy updates (and some memes) or join our discussion on Discord.