🎰Stability Mechanism

How USDB Maintains the Peg

USDB employs a multi-layered approach to ensure its value remains close to $1.00 USD. Rather than relying solely on supply-demand mechanics, it leverages real-world infrastructure cashflows, overcollateralization, and automated stabilizing contracts.

Overcollateralization

• Collateral Ratio: All issued USDB tokens are backed by ≥120% of real-world infrastructure assets, valued at conservative appraisals.

• Dynamic Rebalancing: If the collateral ratio falls below a safety threshold, minting halts and rebalancing actions (asset top-ups, mint burn, or treasury adjustment) are triggered.

• Staking Collateral Boost: BUILD holders can stake to contribute to emergency buffers in exchange for yield.

Real-World Yield Injection

The underlying infrastructure assets (e.g., energy plants, data hubs) generate predictable income. This income is used to:

• Maintain the overcollateralization buffer

• Fund protocol operations and audits

• Distribute staking rewards to USDB and BUILD holders

Automated Risk Controls

• Reserve Health Oracle: Aggregates asset data, price indexes, and uptime statistics

• Circuit Breakers: Prevents further minting when systemic risk is detected

• Emergency Asset Swap Protocol (EASP): Enables replacement of underperforming or distressed assets with safer alternatives via DAO vote

Depeg Protection

• On-chain Stabilization Fund: Maintains an active liquidity buffer (in BNB, USDT, or BTC) for rapid intervention during sharp price moves

• Buyback & Burn Module: Utilizes a portion of protocol revenue to absorb supply pressure during adverse market conditions

• Incentivized Arbitrage: Arbers are rewarded for maintaining price parity between USDB on CEXs, DEXs, and bridges