Questions about Balanced? Find the answers to common queries here.
sICX is a share of an ICX staking pool. Users contribute ICX to the staking pool in exchange for sICX. The ICX is delegated, i-score is claimed, and the total ICX in the staking pool continues to grow, which increases the value of each sICX token. You can convert ICX to sICX for free on the Balanced exchange.
When you deposit ICX as collateral, it's first converted to sICX, and the value increases over time based on ICON's reward rate and the claiming of rewards by the staking pool. You'll always see the ICX value in the UI, but you'll receive sICX when you withdraw it. You won't be able to use your sICX while it's in the collateral pool.
If you want to convert your sICX to ICX, there are two ways to do it:
- 1.Unstake it from the wallet section.
- 2.Swap it for ICX (unstake instantly – you'll receive 1% less ICX)
If you unstake sICX from your wallet, it's often faster than the unstaking period on the ICON Network. When people deposit ICX as collateral or convert their ICX to sICX, that ICX is first used to fill any pending unstaking requests.
If you don't see the ICX value of your collateral increasing, give it a couple of days. It takes 2 days to receive rewards when you first stake ICX; because people keep adding ICX to the collateral pool, there will be some lag.
If you've borrowed Balanced Dollars, redemptions may affect the amount.
If you borrow from Balanced, your collateral can be used as a last resort to stabilise bnUSD. If bnUSD ever falls below $0.90 and the Stability Fund is empty, traders may choose to redeem bnUSD for borrower collateral. For every bnUSD they redeem, they'll receive $0.90 of collateral and repay $0.995 of borrower debt.
Redemptions are only available via the Balanced Loans contract, and are spread across a group of borrowers to limit the impact. The smaller your loan, the less redemptions will affect you.
bnUSD has not fallen below $0.90 during its lifetime. Should it be needed in the future, you can monitor any changes from the position details section.