bnUSD: a stablecoin backed by crypto
Use crypto as collateral to mint Balanced Dollars, and get paid to keep its value stable around 1 USD.
Borrow Balanced Dollars
Deposit cryptocurrency as collateral to create bnUSD, a stablecoin tied to the US Dollar.
Stabilise the price
Your collateral and debt will fluctuate (rebalance) to keep the price of bnUSD close to $1.
Earn Balance Tokens
Receive BALN while you hold debt, and stake it to earn fees and vote on Balanced's future.
What are
Balanced Dollars?
The Balanced Dollar (bnUSD) is a crypto-backed stablecoin pegged to 1 US Dollar. It uses ICX as collateral to guarantee its value, and will soon support a variety of collateral types from other blockchains. Borrow bnUSD against your crypto, or trade for it on the Balanced exchange.
bnUSD was born out of the need for a stable cryptocurrency. No one wants to spend a token that rockets in value overnight – or plummets at the mere hint of bad news. The Balanced Dollar is a more reliable alternative to ICX for payments, trades, and in-app purchases within the ICON ecosystem – and beyond.
Tracked on
Rebalancing:
How bnUSD
maintains its value.
Balanced Dollars exist thanks to borrowers, who assume the role of a banker. They mint bnUSD – which is always worth $1 of debt – and are responsible for maintaining the price. If bnUSD is too cheap or too expensive, their collateral and debt will be rebalanced to bring the price back to $1.
Rebalancing is a smart contract algorithm that exercises buying and selling pressure on the market. Anyone can trigger rebalancing when the price moves beyond a threshold set by the Balanced DAO, currently 10%.
bnUSD is too cheap
Balanced sells borrowers' collateral at a premium to repay some of their debt. This reduces the supply of bnUSD, and the buying pressure increases the price.
bnUSD is too expensive
Balanced increases borrowers' debt – for free – to buy more collateral at a discount. This increases the supply of bnUSD, and the selling pressure decreases the price.
30-day rebalancing stats
Why borrow from Balanced?
Get an interest-free stablecoin
within 30 seconds.
Sign in with your wallet, deposit collateral, then borrow up to 35% of the value in Balanced Dollars. It's interest-free, so you'll only pay a 0.75% fee. And from start to finish, you'll be done in 30 seconds.
Earn Balance Tokens
and network fees.
Receive Balance Tokens (BALN) while you hold debt, as a reward for maintaining the price of Balanced Dollars. Stake BALN to receive a share of the fees collected each day, so you can keep earning long after you've repaid your bnUSD.
Dollar-cost average with rebalancing.
Not good at timing the market? Rebalancing can help. It buys ICX at a discount and sells it at a premium – usually during volatile price movements – which means it's often more beneficial than holding or trading manually.
If you'd borrowed bnUSD since the launch in April 2021, rebalancing would have reduced your debt and added a substantial amount of ICX to your collateral.
Take advantage of
arbitrage opportunities.
You can always mint Balanced Dollars for 1 USD, which makes it easy to benefit from price differences between Balanced and another exchange.
If bnUSD is trading above $1 on Balanced, use it to buy ICX or other stablecoins, then send them to a centralised exchange to lock in more value.
Get paid to supply liquidity.
Balanced offers incentivised liquidity pools to guarantee liquidity for its assets. If you supply Balanced Dollars to an incentivised pool, you'll earn BALN and a share of the trading fees.
To hedge against rebalancing, supply liquidity to the pool for your collateral type (i.e. sICX/bnUSD). Rebalancing forces borrowers to trade against the liquidity pool, so if you hold 1% of the bnUSD debt, supply 1% of that pool's liquidity to counteract the effects.
Invest Balanced Dollars for
a higher return.
Turn your interest-free bnUSD into a moneymaker. Supply Balanced Dollars on Omm to earn interest and Omm Tokens (OMM). Or trade bnUSD for another stablecoin and invest it into a range of interest-earning opportunities.
Terms and conditions
- The borrow fee and rebalancing threshold can be adjusted by the Balanced DAO at any time.
- The BALN allocation for borrowers can also be adjusted, but will decrease over time in line with the distribution schedule.
- Rebalancing adjusts your position when it benefits you, but unless you monitor your position regularly, it may not always appear favourable.
- If your collateral devalues and pushes your risk over the liquidation threshold, all your collateral will be sold to cover your debt.
Mint a crypto-backed stablecoin.
Deposit collateral
Sign in with an ICON wallet and deposit ICX as collateral.
Borrow bnUSD
Mint Balanced Dollars, manage your risk, and maintain the price.
Earn rewards
Claim BALN regularly, and stake it to earn fees and vote on changes.