What evidence is needed for the statement about 1:1
The price chart does not prove bStock collateral coverage. The wallet balance also doesn’t show where the underlying share is stored.
For this statement, a different type of verification is required. Binance states that the collateral of each bStock with its corresponding share can be checked via the Proof of Collateral page.
But even the correct proof has limitations.
Proof of Collateral helps verify the existence of assets backing the tokens. It does not predict the future share price, does not guarantee a tight spread at a specific minute, and does not eliminate the risks of the issuer, custodian, network, or an external DeFi protocol.
I like to separate statements like this:
“Is there collateral?” — I look for reserve confirmation.
“Is the trade favorable right now?” — I check the price, liquidity, and my own scenario.
One green indicator shouldn’t answer all questions at once.
#bStocks
The price chart does not prove bStock collateral coverage. The wallet balance also doesn’t show where the underlying share is stored.
For this statement, a different type of verification is required. Binance states that the collateral of each bStock with its corresponding share can be checked via the Proof of Collateral page.
But even the correct proof has limitations.
Proof of Collateral helps verify the existence of assets backing the tokens. It does not predict the future share price, does not guarantee a tight spread at a specific minute, and does not eliminate the risks of the issuer, custodian, network, or an external DeFi protocol.
I like to separate statements like this:
“Is there collateral?” — I look for reserve confirmation.
“Is the trade favorable right now?” — I check the price, liquidity, and my own scenario.
One green indicator shouldn’t answer all questions at once.
#bStocks