# Synthetic Stablecoins ### **What are Synthetic Tokens/Coins?** A synthetic token or an algorithmic stablecoin allows one to gain exposure to an asset type without actually holding it. In this case, gaining access to the underlying value of USD but by holding a stablecoin. Our token pegs value to 1 BUSD, which by nature is also pegged to 1 USD (fiat). But by utilizing $RONIN users are able to put their underlying stables to work and earn high yield APR instead of just parking those stables in their wallet. ## $RONIN (pegged to BUSD) $RONIN is an algorithmic stable coin pegged to 1 BUSD using a partial collateralization mechanism. (like similar protocols). The protocol will peg 1 $RONIN to 1 BUSD. The treasury will maintain sufficient collateral to back the peg --holding a large portion in BUSD, and a smaller portion in native protocol token. Collateral stored in the treasury is used to allow for redemption. While minting $RONIN will result in an increase in treasury holdings. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://ronin-finance.gitbook.io/ronin-finance/synthetic-stablecoins.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.