How it works
Learn how to deposit ICX, borrow Balanced Dollars, claim rewards, swap assets, supply liquidity, retire Balanced assets, and liquidate high-risk positions.
Deposit ICX as collateral to earn ICON staking rewards (around 10-12% a year; growth rate on Balanced will vary). For a passive, low-risk investment*, this is all you need to do:
- Click Deposit in the collateral section and choose the amount.
- Check the loan section to see how much is available to borrow.
- Click Confirm and complete the transaction.
Your ICX will be staked, and the deposited amount will increase over time to reflect your staking rewards.
You’ll receive sICX when you withdraw, which you can swap for ICX or unstake from your wallet.
*To avoid all risk, swap your ICX for sICX on the trade page instead.
Take out a loan.
Borrow Balanced Dollars for a one-off, 1% fee. Use bnUSD for payments, leverage, or liquidity, and earn Balance Tokens (BALN) if you borrow at least 50 bnUSD and keep your risk below the reward threshold.
- Click Borrow in the loan section and choose the amount (minimum of 10 bnUSD).
- Use the position details section to assess your risk ratio.
- Click Confirm and complete the transaction.
Some or all of your collateral will be locked until you reduce your loan. You can only repay what’s available in your wallet, so you can always buy more bnUSD on the trade page.
Monitor and adjust your position.
To earn Balance Tokens, keep your risk to the left of this threshold.
To withdraw any collateral, keep your risk to the left this threshold.
If your collateral ratio is above 900%, you have a low risk of liquidation.
If your collateral ratio falls below 150%, your position will be liquidated.
Traders can repay loans by selling bnUSD for $1 of ICX collateral. Your position will sometimes rebalance to accommodate.
Use the position details section to monitor your risk and make calculated adjustments. It includes the price ICX has to reach before you no longer earn rewards, all your collateral is locked, and your position gets liquidated, so you can set price alerts for greater peace of mind.
While you borrow from Balanced, your position can be rebalanced (a small amount of collateral sold and debt repaid) to keep the price of bnUSD stable. To maximize your exposure to ICX, keep an eye on the rebalancing section and use the bnUSD you hold debt-free to replace the collateral that gets sold.
Learn more about rebalancing.
Claim Balanced rewards.
Earn Balance Tokens every day you hold a loan of at least 50 bnUSD and stay below the reward threshold, or supply at least $50 to a liquidity pool.
You can claim Balance Tokens from the rewards section after 1pm Eastern each day. Stake BALN from the wallet section to earn a share of the network fees, also distributed daily*.
*The first round of fees will be distributed pro-rata within 2 months of launch, after a vote from Balance Token holders. Stake early to maximize your share.
View and manage assets.
View your balances from the wallet, and use it to send assets, stake/unstake Balance Tokens, unstake sICX, track unstaking requests, and deposit sICX as collateral.
Click an asset to reveal the actions it has available.
Exchange ICON assets on the trade page for a 0.3% fee, or convert ICX to its staked counterpart, sICX, for free.
In the swap section:
- Select an asset to swap, and a compatible asset to receive.
- Enter an amount for one of the assets. The other will automatically fill based on the current rate, with any fees factored in.
- Check the minimum you’ll receive if the price moves against you, and adjust your slippage tolerance (up to 10%) if necessary.
- Click Swap and complete the transaction.
Earn Balance Tokens every day you supply assets to a Balanced liquidity pool. Make sure you understand the risk of impermanent loss before you start.
In the supply liquidity section:
- Choose a liquidity pool. All pools require two assets except ICX/sICX.
- Set the amount to supply, and check what you can expect to earn daily.
- Click Supply.
- Click Send to move each asset, then click Supply and complete the transaction.
Your assets will be locked in the pool for 24 hours. If you supply more liquidity to the same pool within that time, the lockup period will be reset.
Your supply ratio will flucutate based on the asset prices, so keep an eye on it from the liquidity details section. You can withdraw your assets at any time after the initial lock-up period. Learn more about the Balanced liquidity pools.
Retire Balanced assets.
To keep the bnUSD price stable, you can always retire it for $0.95 of sICX from the collateral pool. The best time to retire is when the sICX/bnUSD price is at least 5% higher than the actual ICX price.
To retire bnUSD:
- Go to the trade page and click 'Retire Balanced assets'.
- Enter the amount to retire, then click 'Retire bnUSD'.
- Complete the transaction to receive sICX.
Every retirement reduces the debt for a group of borrowers in exchange for some of their collateral. You can retire up to 0.1% of a group's debt in a single transaction, so the maximum amount varies each time. If the transaction fails, try again later or retire a smaller amount.
Liquidate high-risk positions.
Set up a liquidation bot to earn even more from Balanced. In exchange for a 10% profit, you can use the bot to cover the debt and liquidate any position that crosses the liquidation threshold.
You can set up your own bot using the smart contracts, or wait for the Balanced liquidation bot and setup guide (coming soon).