BD-Stables are cryptocurrency tokens that are pegged to their fiat currency, partially collateralized and algorithmically stabilized. While there are a few solutions for USD pegged stables, Blindex is creating a stable token for other currencies to support a truly decentralized financial system that is not dependent on USD to get in and out of a trade.
Each BD-Stable is named after its fiat's country code (e.g. an Australian Dollar’s stable is BDAU, Chinese Yuan is BDCN, and so on).
This is the complex/interesting part. First of all, we’re deriving from the great work done by the FRAX team, who managed to build very robust foundations for a partially collateralized, algorithmic stablecoin. We’ve added additional logic to support multiple fiat currencies and not just USD, as well as changed the collateral to be only fully decentralised BTC & ETH (Since the project is launching on RSK chain - it'll be using rBTC, wrBTC & ETHs, which are the corresponding equivalents). The stability is algorithmically achieved by the combination and constant adjustment of multiple factors, such as collateral ratio, collateral and buffer pricing, and market trust. At any point in time, BD-Stables can be Redeemed back into the underlying collateral based on the effective collateral ratio.
BDX is the non-stable utility token of the Blindex protocol. It is meant to be volatile and hold rights to governance and all utility of the system. Its usage includes adding and adjusting collateral pools, adjusting various fees (like Minting or Redeeming), and refreshing the rate of the collateral ratio.
Decentralized Exchanges use smart contracts to trade (swap) tokens. You will need to approve tokens for the first time in order to give the smart contract permission to use the particular tokens from your wallet. You would need to do this for each new token and for each new transaction (e.g. approve BDX for swapping and for staking).
Minting/Redeeming functions are more useful when you’re looking to perform a large transaction, that if done as a regular swap would cause significant slippage and a sub-optimal price outcome for the purchase. On the other hand, the Swap function is more useful for smaller transactions (relative to the size of the pool), especially when you don’t want to deal with the underlying collateral and just want to swap token A to token B.