USDB, a stable token backed by BNT, can be used to create stable liquidity pools on https://bancor.cotrader.com/.
Stable:Stable pools (e.g., DAI:USDB or USDT:USDB) eliminate price movements in the pool’s assets, eliminating impermanent loss and maximizing the profitability of conversion fees.
In order to mint USDB, you will need to follow these 2 steps:
- Deposit BNT
- Mint USDB with the BNT you’ve deposited.
1. Go to usdb.peg.network
2. Click on the USDB Quick Actions tab.
3. Click “Unlock BNT”
4. You will see a MetaMask window with a transaction to sign. This is an approve transaction to allow the contract to access the BNT in your wallet when (and only when) you execute a “borrow” transaction.
5. Sign the transaction
Once the transaction is confirmed on the blockchain, the “Deposit” section will change.
6. Enter the amount of BNT you would like to deposit
A MetaMask transaction window will appear.
7. Sign the transaction. Once the transaction is confirmed you can proceed to minting USDB.
8. In the “Borrow” section of the "Quick Actions", you will see the available balance you can mint. This will be 50% of the value of the BNT you’ve deposited. (The amount is now indicated in USDB).
9. Click the “Borrow” option (after you’ve indicated the amount of USDB you’d like to mint). This will open a MetaMask window with the transaction to mint USDB.
10. Sign the transaction
You will now have USDB in your wallet.
Use the USDB to add liquidity to existing liquidity pools (relays) or create a new one!