BIP7: Adjust the Rebalancing Threshold to +-3%

Discussion

Currently, the rebalancing threshold is set to 5%, which means the price of bnUSD can be rebalanced to $0.95 and $1.05. BIP7 proposes to lower the threshold to 3%, which will result in tighter peg – $0.97 to $1.03. This will improve the stablecoin utility of bnUSD by reducing the 10% range to 6%.

3 Likes