# Asset-Backing
### Overview
Asset-backing gives a SmartDeFi™ token an on-chain reserve.
That reserve is built from trading activity.
It supports a measurable backing value per token over time.
Asset-backing supports baseline value.
It does not lock the market price to one level.
### How asset-backing works
1. A portion of trading activity routes to the asset-backing pool.
2. The pool holds the backing asset chosen at launch.
3. That asset can be BNB, USDT, or another supported coin.
4. Backing per token changes as the pool grows or supply changes.
5. If tokens are burned, each remaining token can represent more backing.
### How backing value is calculated
Backing value is the reserve value per token.
It depends on two moving parts:
* The total value held in the backing pool
* The token supply used for the backing calculation
If the pool grows, backing per token can rise.
If supply falls, backing per token can also rise.
{% hint style="info" %}
**Backing value** is the reserve value per token.
**Market price** is the live trading price.
Market price can move above or below the backing value.
{% endhint %}
### Simple example
Assume a token has:
* **100 BNB** in the backing pool
* **1,000,000 tokens** in circulating supply
That means each token has **0.0001 BNB** of backing.
If supply drops to **500,000 tokens** and the pool stays the same, each token has **0.0002 BNB** of backing.
That is why supply reduction can increase backing per remaining token.
### What changes backing over time
Backing can change when:
* Trading activity adds more value to the pool
* Token supply rises or falls
* The token design routes value into the reserve
That means backing is a live on-chain metric, not a fixed launch number.
### Why it matters
Asset-backing changes the risk profile of a token.
It gives the project:
* A baseline value supported by reserve assets
* On-chain reserve growth tied to activity
* A foundation for features like [SmartLending](/smartdefi-tm-platform/smartdefi-protocol/smartlending.md)
* Clear backing data that users can inspect on-chain
### What it does not do
Asset-backing does not freeze market price.
Market price can still move quickly and remain volatile.
Asset-backing adds underlying value support.
It does not remove speculation, volatility, or shifts in demand.
### Common questions
#### Can holders withdraw the backing directly?
Not by default.
Backing is part of the token design and powers SmartDeFi™ mechanics.
#### Does backing always increase?
Backing usually grows through trading activity.
Backing per token can also change when supply changes.
#### What determines the backing asset?
The project chooses the backing asset at launch.
That asset is part of the token configuration.
#### Where can I view the current backing?
Use the [Backing](/smartdefi-tm-platform/token-launchpad/sdscan-tool/backing.md) view in SDscan.
#### What happens if trading slows down?
Backing growth can slow down as activity slows.
The existing reserve still remains on-chain unless the token design changes it.
### Related pages
* [SmartDeFi™ Launchpad](/smartdefi-tm-platform/smartdefi-protocol.md)
* [SmartLending](/smartdefi-tm-platform/smartdefi-protocol/smartlending.md)
* [Backing](/smartdefi-tm-platform/token-launchpad/sdscan-tool/backing.md)
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