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BUSD BEP20 or ERC-20 During the Merge?

Binance

Cryptocoins Exchanges / Binance 95 Views

I'm principally in stables during this market downturn, specifically BUSD. From my DD, it's clear that solely erc-20 BUSD is the stablecoin issued by Paxos, regulated in the state of New York and absolutely backed by money and equal in FDIC insured financial institution accounts https://paxos.com/2022/04/07/busd-issued-by-paxos-on-ethereum-vs-busd-on-the-bnb-smart-chain/

Now there are many controversies surrounding the secure coins in the course of the merge. The highly hypothetical and impossible worse-case situations claiming stablecoins on ETH chain might 'stay caught' within the ETH sensible contracts ceaselessly or lose their peg because of the potential PoW fork, destructive funding and other issues with the stables on DeFi protocols.

Just making an attempt to determine which chain to stick to with my busd in the course of the merge. The best way I see it, in principle greater technological danger is related to ERC-20 BUSD than with BUSD on Binance Sensible Chain. But then again, the depeg on erc20 BUSD would imply depeg on BSC Busd too - since there's only one worth/ticker of Busd. Plus, as mentioned above, only erc-20 is regulated and insured.

So the one danger I see is that absolutely unlikely state of affairs the place ALL erc20 stablecoins 'break down' through the Merge. What your strategy to this?

submitted by /u/robis87
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