[BUSD] MIP6 Collateral Onboarding Application for Binance USD Token
- Who is the interested party for this collateral application?
- Provide a brief high-level overview of the project, with a focus on the applying collateral token.
BUSD was launched in 2019. It is issued and custodied by Paxos. Currently, BUSD is issued on both Ethereum and Binance chain (this application addresses only erc20 BUSD), with total BUSD circulating on Ethereum of ~170 million.
- Provide a brief history of the project.
Binance launched in 2017 and quickly became the most prominent spot crypto exchange. It has since moved into adjacent verticals such as futures, mining, staking, OTC and stablecoin issuance. Binance began issuing stablecoins in 2019.
- Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.
Whitepaper - none for BUSD specifically, linking PAX whitepaper: https://account.paxos.com/whitepaper.pdf
Website (Paxos): Binance USD (BUSD) - Paxos
Website (Binance): https://www.binance.com/en/busd
BUSD token contract: https://etherscan.io/address/0x4Fabb145d64652a948d72533023f6E7A623C7C53
- Link any available audits of the project. Both procedural and smart contract focused audits.
Accountant attestations (look for BUSD tab): Attestations - Paxos
Technical audit reports: busd-contract/audit-reports at master · paxosglobal/busd-contract · GitHub
- Link to any active communities relating to your project.
- How is the applying collateral type currently used?
BUSD is used as a quote currency on Binance exchange, and can also be used in various DeFi products such as Curve and Aave.
- Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?
Paxos is the issuer and custodian for BUSD. Paxos is a New York State trust company regulated by the NYDFS.
- Where does exchange for the asset occur?
BUSD can be exchanged on Binance, as well as via Curve and other DEX platforms. BUSD can also be created and redeemed via Paxos (KYC required).
- (Optional) Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.
I am not aware of any publicly available legal opinions addressing the project or token’s regulatory standing.
- (Optional) Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.
BUSD was given permission to operate by the NY Department of Financial Services. Press release: Press Release - September 5, 2019: Superintendent of Financial Services Linda A. Lacewell Announces Approval of First Gold-Backed Virtual Currency in New York State | Department of Financial Services
- (Optional) List any possible oracle data sources for the proposed Collateral type.
BUSD could be pegged to $1 similar to the USDC price oracle.
- (Optional) List any parties interested in taking part in liquidations for the proposed Collateral type.