Balanced
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FAQ
Questions about Balanced? Find the answers to common queries here.

How to earn rewards.

ICX staking rewards. Swap ICX for sICX, or deposit ICX as collateral to earn ICON staking rewards. The ICX value will increase over time to reflect the rewards (current rate), although it may increase at a slower rate than staking through a regular wallet.
Loan rewards. Borrow at least 50 bnUSD and keep your risk below the 'All collateral locked' threshold to earn Balance Tokens daily. To earn rewards, you must be below the threshold around 1pm Eastern each day. Refer to the smart contract code for precise timing.
Liquidity rewards. Supply at least $50 of assets to a liquidity pool and earn Balance Tokens every day they're in there. To earn rewards, your assets must be in the pool around 1pm Eastern each day. Refer to the smart contract code for precise timing.
Network fees. Stake Balance Tokens to earn a share of the network fees each day. You'll also earn fees for BALN supplied as liquidity.
Liquidation rewards. Set up a liquidation bot to earn income from triggering liquidations and repaying bad debt.

How to qualify for the airdrip.

In partnership with the ICON Foundation, ICX holders can participate in the ICON community airdrip to receive Balance Tokens. All BALN the ICON Foundation earns through Balanced will be redistributed in a weekly drip.
From the day Balanced launches, delegate (stake and vote with) ICX from a wallet you hold the private keys for, like ICONex, a Ledger, or MyIconWallet on your iOS or Android device. Then sign in to app.balanced.network/airdrip with your wallet every week after the launch to claim your drip of Balance Tokens. You have a week to claim each drip – if you forget, you’ll lose it.
If you use a supported wallet, like ICONFi, stake your ICX and relax. You'll automatically receive the airdrip every week after Balanced launches.
If you stake your ICX somewhere else, like Binance, they'll need to add support for the airdrip. They've shared no plans to do so at this stage, so you might want to use another wallet to make sure you receive BALN.

How sICX works.

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 have a loan, rebalancing will also be a factor.

How rebalancing affects your position.

To keep bnUSD close to $1, a rebalancing mechanism can be triggered whenever there’s a significant price difference between the oracle and the Balanced exchange. This ‘rebalancing threshold’ is set to 3%, but can be adjusted by the community at any time.
When bnUSD falls below the rebalancing threshold, Balanced sells borrowers' sICX collateral at a high price, and uses the bnUSD proceeds to repay a larger amount of their debt.
When bnUSD is above the rebalancing threshold, Balanced increases borrowers' debt (free of charge), then uses the bnUSD to buy sICX at a cheap rate and add it to the borrowers' collateral.
Rebalancing is done in groups of 50, using a maximum of 0.05% of the group’s debt. Each borrower is affected the same, percentage wise. After they’ve been rebalanced, every other borrower will take a turn before it happens to them again.
The value of collateral sold through rebalancing can never be more than the amount you borrowed. Rebalancing works on a percentage-basis, so if 10% of all bnUSD was burned through rebalancing, your debt would decrease by 10%, on average. If you have less debt, less value of collateral can be sold.
To mitigate the effects of rebalancing, you can participate in the sICX/bnUSD liquidity pool. Rebalancing trades borrowers' collateral against the sICX/bnUSD pool, so if you maintain similar percentages of the liquidity pool and total debt, your position in the sICX/bnUSD pool will counteract the effects of rebalancing. Be aware that participation in the sICX/bnUSD pool comes with its own risks.
To monitor the changes to your position, keep an eye on your rebalancing values in the position details section.

How to add Balanced assets to your wallet

ICONex

Open ICONex, then click the 3 dots next to your public key and choose Add Token. Enter the contract address for each asset:
    BALN: cxf61cd5a45dc9f91c15aa65831a30a90d59a09619
    bnUSD: cx88fd7df7ddff82f7cc735c871dc519838cb235bb
    sICX: cx2609b924e33ef00b648a409245c7ea394c467824

MyIconWallet

Open MyIconWallet, go to Settings > Manage tokens, and select Balance Token, Balanced Dollar, and Staked ICX.
Last modified 9d ago