Bidao operates as a multi-chain decentralized finance (DeFi) platform and stablecoin system. It distinguishes itself as the first trustless stablecoin linked to the U.S. dollar (USD) built on the Binance Chain infrastructure. A key capability of Bidao is its acceptance of diverse cryptocurrencies as collateral for minting BID stablecoins, such as TRON (TRX), Ontology (ONT), and Dash (DASH).
By fully integrating with the Binance blockchain, this new stablecoin solution leverages the network's speed, reliability, and efficiency. The team aims to surpass the transaction speeds of traditional ERC-20 tokens and achieve long-term scalability, facilitated by the straightforward deployment of Bidao sidechains and the efficient smart contracts provided by Binance Chain. Plans are in place to incorporate additional blockchains in the near future.
Utilizing Binance Chain as the settlement layer provides advantages over other platforms like Ethereum, specifically regarding significantly faster settlement times and lower fees. To generate BAI stablecoins, users require BNB alongside a supported collateral asset. These stablecoins maintain a 1:1 peg with the US dollar. Borrowing BAI tokens requires over-collateralization, and the Bidao team has established a stability mechanism using multiple techniques to ensure the stablecoin remains pegged at 1 USD.