FAQs
🐂 About xBNB (Leverage Token)
Q: Will xBNB get liquidated? Short Answer: No, unlike perpetual contracts, there is no forced liquidation. Detailed Explanation: In traditional perpetual contracts, your position will be forcibly closed by the exchange when the price hits the liquidation threshold, and your margin will be wiped out. On Aspan, xBNB is a token. Although it has approximately 3x leverage, the number of xBNB tokens you hold in your wallet will never decrease due to price declines.
Risk Note: If BNB’s price crashes extremely, xBNB’s net asset value (NAV) may drop to a very low level (even close to zero). However, as long as you do not sell, xBNB’s NAV will rebound when BNB’s price recovers (despite potential volatility decay).
Q: Why does xBNB have no funding fees? How is this possible? Traditional funding fees are designed to balance supply and demand between long and short positions. On Aspan, xBNB achieves leverage through spot holdings (transferring the volatility of stablecoins via the accounting invariant), so there is no "borrowing" relationship or "counterparties." The "cost" paid by xBNB holders is forgoing the underlying staking rewards (which are allocated to the Stability Pool) in exchange for a long-term leverage exposure with zero fees.
Q: Why is the leverage sometimes not exactly 3x? xBNB’s leverage ratio is dynamic (Effective Leverage), determined by the current ratio of the system’s TVL to xBNB’s market capitalization.
When BNB rises, the leverage ratio will naturally decrease (e.g., to 2.5x).
When BNB falls, the leverage ratio will naturally increase (e.g., to 3.5x).
The protocol incentivizes arbitrageurs to maintain the leverage ratio within the target range of 2.7x–3.3x through dynamic fees.
Q: What is "Volatility Decay"? This is a mathematical characteristic of all leverage tokens. In a choppy, range-bound market (e.g., BNB rises 10% then falls 10%), the net value decay of leverage tokens will be greater than holding spot BNB. Therefore, xBNB is most suitable for unilateral trending markets and is not recommended for long-term holding in prolonged sideways markets.
🛡️ About apUSD & Stability Pool (Yield)
Q: Is apUSD an algorithmic stablecoin? Like UST (Luna)? Absolutely not. UST maintained its peg by algorithmically minting and burning LUNA (with no or partial collateralization). apUSD is an over-collateralized stablecoin. Every apUSD is backed by underlying BNB LST assets worth more than $1. Even if the system enters rebalancing mode, its underlying logic is still based on asset-value-backed redemption, not algorithmic confidence.
Q: Why doesn’t my s-apUSD balance increase after depositing into the Stability Pool? Aspan’s Stability Pool uses an Auto-Compounding mechanism instead of a "manual reward claiming" model.
The number of s-apUSD tokens you hold remains unchanged.
However, the exchange rate of s-apUSD to apUSD will continue to rise as yields accumulate.
Example: When you deposit, 1 s-apUSD = 1.00 apUSD; one month later, 1 s-apUSD = 1.02 apUSD. When you withdraw, you will receive more apUSD than you deposited.
Q: Where does the Stability Pool’s APY come from? Is it airdrop subsidies? No. The yield comes from real BNB staking rewards. The underlying assets held by the protocol (slisBNB / BNBx) generate approximately 3%–5% annualized yield in BNB terms every day. Since xBNB holders forgo these rewards, all yields generated by the entire pool flow to the Stability Pool. This makes the yield rate of s-apUSD usually 2–3x higher than that of regular LSTs.
Q: What is "System Rebalancing"? Why did my stablecoins turn into xBNB? This is a defense mechanism designed to protect the protocol from collapse. When BNB’s price experiences a catastrophic crash (system CR < 130%), the protocol will automatically burn part of the apUSD in the Stability Pool and convert it to xBNB at the current value to reduce system debt.
What it means: You may be forced to "buy the dip" of BNB with your stablecoins. While your asset allocation becomes "stablecoins + a small amount of BNB" in the short term, this successfully prevents the protocol from entering a death spiral and safeguards the safety of your remaining assets.
⚙️ Operations & Trading
Q: Why is the price I see on PancakeSwap different from the official website? The Aspan official website uses Oracle Pricing for minting and redemption, which is based on NAV (Net Asset Value) and ensures zero slippage. PancakeSwap is a secondary market where prices are determined by supply and demand, which may lead to premiums or discounts.
Recommendation: For large capital inflows and outflows, prioritize using the official website’s Mint/Redeem functions.
Q: Can I participate directly with USDT? Yes. Although the underlying protocol only accepts LSTs, we provide a Zap (one-click conversion) function. When you pay with USDT on the front-end, the system will automatically swap it for slisBNB and deposit it into the protocol—this process is seamless to users.
Q: If there is no slippage, why are there fees? Aspan charges two types of fees:
Base Fee (0.1% – 0.3%): Used for protocol revenue and treasury reserves.
Dynamic Fee: A regulatory mechanism. When the system’s leverage ratio deviates from the target range, fees for certain directions will increase, while fees for opposite directions will decrease (or even be zero), guiding users to help the system restore balance.
🔒 Security & Risk Control
Q: What happens if the underlying LST (e.g., slisBNB) depegs? Aspan has a Circuit Breaker mechanism. If oracles detect that the slisBNB price on DEXs deviates from its internal exchange rate by more than 3%, the protocol will automatically suspend slisBNB deposits to prevent bad debt inflows. Meanwhile, since Aspan’s internal valuation is based on the LST’s real exchange rate rather than DEX prices, it is not vulnerable to sudden depeg attacks.
Q: Have the contracts been audited? Yes. Smart contract security is our bottom line. Aspan’s core contracts have been audited by [Audit Firm Name]. You can view the detailed report on the [Audit Report] page. In addition, all contract changes are subject to a 48-hour Timelock restriction.
Q: Is there a lock-up period for my funds?
xBNB/apUSD: No lock-up period; tradeable at any time.
Stability Pool (s-apUSD): No hard lock-up period; withdrawable at any time. However, during the extremely short window when the system triggers rebalancing, there may be a brief snapshot lock (usually a few minutes).
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