Question 1

What is BUSD?

Accepted Answer

BUSD (Bera USD) is Berachain's native stablecoin, designed to maintain a stable value of $1.00. It is the rebrand of HONEY, the same underlying protocol and collateral, now under a name that makes its dollar peg explicit. BUSD serves as the base dollar unit across the Berachain ecosystem for trading, lending, borrowing, and settlement.

Question 2

What backs BUSD?

Accepted Answer

BUSD is fully backed by a reserve of dollar-denominated assets held in on-chain collateral vaults. Each BUSD is redeemable for its underlying collateral, and the reserve is maintained at or above full backing at all times. Unlike algorithmic stablecoins, BUSD carries no uncollateralized supply; its value derives entirely from verifiable reserves.

Question 3

Where can I use BUSD?

Accepted Answer

BUSD is accepted throughout Berachain. You can trade it on BEX, supply or borrow it on BEND, deploy it in Proof-of-Liquidity strategies, and, following the Bectra upgrade, use it to pay network gas fees. It is also integrated across third-party applications as the ecosystem's default stable asset.

Question 4

Can I mint and redeem BUSD?

Accepted Answer

Yes. Minting and redemption are permissionless and available at all times. You mint BUSD by depositing approved collateral such as USDC.e, and redeem it for the underlying collateral at 1:1. A small protocol fee applies to each mint and redemption (in addition to a BERA gas fee). This open, two-way convertibility is the primary mechanism that maintains the peg.

Question 5

How can I verify BUSD reserves?

Accepted Answer

Because BUSD's reserves are held on-chain, backing can be verified independently and in real time, without relying on periodic third-party attestations. You can inspect the collateral held in the protocol's vault contracts directly on the block explorer, or review public dashboards (such as Dune) showing total supply, composition, and the current collateralization ratio.

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