bnUSD: a stablecoin backed by crypto
Use crypto as collateral to mint Balanced Dollars, and trade it to keep the price around 1 USD.
Borrow Balanced Dollars
Deposit cryptocurrency as collateral to mint bnUSD, and earn BALN while you hold debt.
Stabilise the price
Use the Stability Fund to trade bnUSD 1:1 with other stablecoins whenever the price fluctuates.
Transact with confidence
Make bnUSD your main currency for payments and trades, or use it to increase your passive income.
What is the
Balanced Dollar?
The Balanced Dollar (bnUSD) is a decentralised stablecoin that tracks the price of 1 US Dollar. It uses crypto as collateral to guarantee its value, with support for a variety of cross-chain assets.
bnUSD is over-collateralised, so the total supply cannot exceed the value that backs it.
bnUSD was born out of the need for a stable cryptoasset. No one wants to sell a token right before it pumps in value, or hold one that plummets at the first hint of bad news. bnUSD offers a stable alternative for payments and trades on the ICON Network — and on every blockchain ICON connects to.
Total supply
...
...
Total backing
...
Collateral
...
Stability Fund
...
Supported collateral types
ICX
BTCB
ETH
Available on
ICON
BNB Chain
Archway
How bnUSD
maintains its value.
The Balanced Dollar is backed by volatile cryptoassets, so how does Balanced guarantee its value?
Loans are liquidated when bnUSD is worth more than ... of the collateral that backs it, and the Stability Fund and Redemption method can be used to reverse short-term price fluctuations.
Stability Fund
The Stability Fund is the primary stability method for bnUSD. It allows you to trade bnUSD 1:1 with approved stablecoins, minus a ... fee. You’ll see an option to use the Stability Fund for supported swaps on the Trade page.
To limit Balanced’s risk exposure, the Stability Fund has a maximum limit for each stablecoin, which can be changed via governance at any time.
If bnUSD is above $1
Send approved stablecoins to the Stability Fund to mint bnUSD. Sell the bnUSD at a premium for more stablecoins, and repeat until it’s no longer profitable.
If bnUSD is below $1
Send bnUSD to the Stability Fund to burn it in exchange for another stablecoin. Use the stablecoin to buy cheap bnUSD, and repeat until it’s no longer profitable.
Redemption method
The Redemption method allows traders to redeem (burn) bnUSD for borrower collateral, minus a ... fee. It’s only beneficial to redeem bnUSD if the price falls below ..., so it’s used as a last resort if the Stability Fund is empty.
Redemptions are spread across a group of borrowers to limit the impact, and are only available via smart contract.
If bnUSD is below ...
Send bnUSD to the Balanced Loans contract in exchange for ... of the value in a specific collateral type. ... of the bnUSD will be burned to repay borrowers’ debt, and ... will be sent to the DAO Fund.
Why borrow from Balanced?
Open a stablecoin loan
within 30 seconds.
With a few clicks, you can deposit collateral and borrow up to ... of the value in Balanced Dollars. It’s interest-free, so you’ll only pay a one-off, ... fee.
Earn Balance Tokens
and network fees.
Balanced pays borrowers to mint bnUSD, so you’ll earn Balance Tokens (BALN) until you repay your loan. Lock up BALN for 1 week to 4 years to boost your return and earn a share of the network fees.
Take advantage of
arbitrage opportunities.
You can always borrow bnUSD for $1, which makes it easy to use price fluctuations to your advantage. If bnUSD trades above $1, swap it through the Stability Fund or use it to buy other assets at a discount.
Get paid to supply liquidity.
Balanced incentivises users to supply liquidity for its assets. If you supply bnUSD to an incentivised pool, you’ll earn BALN and a share of the trading fees.
Terms and conditions
- The borrow fee, Stability Fund fee, and redemption threshold can be adjusted by the Balanced DAO at any time.
- BALN rewards for borrowers are also adjustable, but will decrease over time in line with the distribution schedule.
- If your collateral devalues and pushes your risk over the liquidation threshold, all of that collateral type will be sold to cover your debt.