{"id":"byusd","title":"BYUSD","content":"**BYUSD** is a bridged [stablecoin](https://iq.wiki/wiki/stablecoin) that operates on the [Berachain](https://iq.wiki/wiki/berachain) network. It represents [Paypal USD (PYUSD)](https://iq.wiki/wiki/paypal-usd-pyusd) that has been transferred from its native [blockchain](https://iq.wiki/wiki/blockchain) to [Berachain](https://iq.wiki/wiki/berachain), where it functions as the primary [collateral](https://iq.wiki/wiki/collateral) asset for the ecosystem's native [stablecoin](https://iq.wiki/wiki/stablecoin), [HONEY](https://iq.wiki/wiki/honey-honey).\n\n## Overview\n\nBYUSD is a key component of the [Berachain](https://iq.wiki/wiki/berachain) [decentralized finance (DeFi)](https://iq.wiki/wiki/defi) ecosystem. As a bridged version of [Paypal's PYUSD](https://iq.wiki/wiki/paypal-usd-pyusd) [stablecoin](https://iq.wiki/wiki/stablecoin), it provides a link between the established financial infrastructure represented by PayPal and the [Berachain](https://iq.wiki/wiki/berachain) network. Its primary function is to serve as the main [collateral](https://iq.wiki/wiki/collateral) backing [HONEY](https://iq.wiki/wiki/honey-honey), [Berachain](https://iq.wiki/wiki/berachain)'s native [stablecoin](https://iq.wiki/wiki/stablecoin). According to statements from the [Berachain](https://iq.wiki/wiki/berachain) development team, HONEY is designed to be 100% collateralized, with BYUSD forming the bulk of this backing. This mechanism is intended to ensure the stability and value peg of HONEY within the [Berachain](https://iq.wiki/wiki/berachain) ecosystem. [\\[1\\]](#cite-id-T26XfH7kjz)\n\nThe existence of BYUSD and its role in collateralizing HONEY became a subject of public discussion in May 2025, when users raised concerns about the complexity of redeeming HONEY for other stablecoins like [USDC](https://iq.wiki/wiki/usdc). This led to a public clarification from a [Berachain](https://iq.wiki/wiki/berachain) co-founder [Smokey the Bera](https://iq.wiki/wiki/smokey-the-bera), who detailed the function of BYUSD and the steps required to convert it back into other assets. The process highlights the interoperability challenges between different [blockchain](https://iq.wiki/wiki/blockchain) networks and the reliance on external platforms, such as bridges and centralized exchanges, for liquidity and off-ramping. [\\[1\\]](#cite-id-T26XfH7kjz)\n\n## Technology and Mechanism\n\nThe core mechanism of BYUSD revolves around its role as [collateral](https://iq.wiki/wiki/collateral) and the process for its conversion and redemption.\n\n### Collateralization of HONEY\n\nBYUSD serves as the primary asset backing the HONEY [stablecoin](https://iq.wiki/wiki/stablecoin). The [Berachain](https://iq.wiki/wiki/berachain) protocol is designed to ensure that HONEY is fully collateralized, meaning that the value of the assets held in reserve (primarily BYUSD) is sufficient to cover the value of all HONEY in circulation. This model is intended to maintain user confidence in HONEY's stability and its peg to the U.S. dollar. The reliance on an externally issued [stablecoin](https://iq.wiki/wiki/stablecoin) like [PYUSD](https://iq.wiki/wiki/paypal-usd-pyusd) (represented as BYUSD) is a common strategy for new [blockchain](https://iq.wiki/wiki/blockchain) ecosystems to bootstrap their native stablecoin's liquidity and credibility. [\\[1\\]](#cite-id-T26XfH7kjz)\n\n### Redemption and Conversion Process\n\nAs of May 2025, the process for a user to convert BYUSD from the [Berachain](https://iq.wiki/wiki/berachain) network back into fiat currency or other stablecoins involves several steps that span multiple platforms and blockchains. This multi-stage process was outlined by a [Berachain](https://iq.wiki/wiki/berachain) co-founder and includes the following stages:\n\n1. **Bridging:** The user must first use a cross-chain bridge to transfer their BYUSD from the [Berachain](https://iq.wiki/wiki/berachain) network to the [Ethereum](https://iq.wiki/wiki/ethereum) network.\n2. **Decentralized Exchange (DEX) Swap:** Once the asset is on [Ethereum](https://iq.wiki/wiki/ethereum), the user can swap it within a decentralized finance liquidity pool, such as the one available on [Curve Finance](https://iq.wiki/wiki/curve-finance).\n3. **Centralized Exchange (CEX) Conversion:** Alternatively, the user can send the asset from [Ethereum](https://iq.wiki/wiki/ethereum) directly to a centralized exchange that supports PYUSD. From the CEX, the asset can be converted into fiat currency or other digital assets.\n\nExchanges cited as supporting this final conversion step include [Coinbase](https://iq.wiki/wiki/coinbase), [OKX](https://iq.wiki/wiki/okx), [Bybit](https://iq.wiki/wiki/bybit), [Crypto.com,](https://iq.wiki/wiki/cryptocom) and [Kraken](https://iq.wiki/wiki/kraken). This complex pathway underscores the ecosystem's reliance on external infrastructure for user off-ramping. [\\[1\\]](#cite-id-T26XfH7kjz)","summary":"BYUSD is a bridged stablecoin on the Berachain network, representing Paypal USD (PYUSD). It serves as the primary collateral for Berachain's native stablecoin, HONEY.","images":[{"id":"QmfDFeDgbrwLTMpuNTfjZUUaUTCh5M8qLmmMxz1RF7ECv4","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"cryptocurrencies"}],"tags":[{"id":"Stablecoins"}],"media":[],"metadata":[{"id":"references","value":"[\n  {\n    \"id\": \"T26XfH7kjz\",\n    \"url\": \"https://www.chaincatcher.com/en/article/2182160\",\n    \"description\": \"Berachain co-founder clarifies HONEY collateral\",\n    \"timestamp\": 1761603893599\n  },\n  {\n    \"id\": \"event-berachain-co-founder-clarifies-honey-collateral-link\",\n    \"description\": \"Event link\",\n    \"url\": \"https://www.chaincatcher.com/en/article/2182160\",\n    \"timestamp\": 1761603894150\n  }\n]"},{"id":"references","value":"https://www.chaincatcher.com/en/article/2182160"},{"id":"commit-message","value":"\"feat: Create wiki article for BYUSD, a bridged stablecoin on Berachain collateralizing HONEY.\""}],"events":[{"id":"933d34ea-1dfb-489c-8fb6-3a62381e3ac8","date":"2025-05","title":"Berachain Co-founder Clarifies HONEY Collateral","type":"DEFAULT","description":"A Berachain co-founder clarified that HONEY is 100% collateralized, primarily by BYUSD, and detailed the multi-step process for cashing out the asset via Ethereum in response to user concerns.","link":"https://www.chaincatcher.com/en/article/2182160","multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null},{"id":"de4923e1-4db3-4590-90cd-22c2c17cccab","date":"2025-10-27","title":"BYUSD Founded","type":"CREATED","description":"BYUSD was founded and officially launched."}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"language":"en","version":1,"linkedWikis":{"blockchains":["berachain","ethereum"],"founders":[],"speakers":[]},"operator":{"id":"0xbc74F7Beea348c97350e4DBc49227A5Ee7d27D3e"}}