Balanced is a DAO (decentralized autonomous organization) consisting of a decentralized balance sheet of cryptocurrency collateral, with the vision of creating an algorithmic stablecoin backed by a variety of blockchain-based assets from different ecosystems.
It allows participants to mint and borrow a stable asset, while also providing market makers with clearly defined arbitrage opportunities. The initial version of Balanced will support the minting of a USD-pegged asset, referred to as Balanced Dollars (bnUSD), backed only by ICX.
Participants must deposit collateral before they can mint bnUSD. After minting bnUSD, the participants' collateral and debt position is used to maintain the peg of bnUSD on the Balanced decentralized exchange.
Participants will be rewarded with Balance Tokens (BALN) in exchange for collateral contributions and participation in Balanced. This process will be referred to as “mining”. Balance Tokens represent ownership in the Balanced DAO and come with several benefits discussed in the Balance Token economics section.
An excellent use case for blockchain protocol tokens like ICX is as a form of collateral. Balanced can bring this value to many blockchain-based assets, with the goal of making bnUSD a heavily diversified algorithmic stablecoin powered and secured by the ICON blockchain and its bridges to other networks. While being used for transaction fees and staking gives meaningful value to native protocol assets like ICX, Balanced will expand this utility by turning these assets into the reserve backing of our algorithmic stablecoin.
Last modified 9d ago
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