BONK is a decentralized reserve currency platform on Binance Smart Chain and Avalanche.
BONK is a free-floating currency backed by our treasury supply of the stable coin BUSD and DAI. BONK tokens can’t be minted or burned by anyone except the protocol. The protocol only does so in response to price. Each BONK is backed by at least 1 BUSD. If BONK ever trades below 1 BUSD, the protocol buys back and burns BONK, pushing the price back up to 1 BUSD.
BONK is backed by BUSD and DAI, not pegged to it. This allows the BONK token to achieve a stable floating value, while never falling below the value of its backed assets. The token price is designed to equal (1 BUSD or 1 DAI + Premium), with "premium" reflecting market value.
De-Fi 2.0 matters because it can democratize finance without compromising on risk. De-Fi 2.0 also attempts to solve the following problems
- 1.Toxic Liquidity
- 2.High gas fees