Borrow Balanced Dollars
Learn how to deposit collateral, mint Balanced Dollars, optimise your risk, and close your position.
Balanced has a stablecoin called Balanced Dollars (bnUSD). You can borrow ("mint") Balanced Dollars for 0% interest, and earn Balance Tokens while your loan is active.
Before you can mint Balanced Dollars, you'll need to deposit collateral:
- 1.Go to the collateral section on the Home page and choose the asset you want to deposit. Each collateral type is a separate position with a different risk profile.
- 2.Click Deposit and choose the amount. The loan section will display how much bnUSD this will allow you to borrow.
- 3.Click Confirm and complete the transaction.
If you deposit ICX, it will be converted to sICX (Staked ICX), and the deposited ICX value will grow over time to reflect the staking rewards it earns. When you withdraw collateral, you’ll receive sICX.
All staked ICX is delegated towards the ICON validators that contribute to Balanced: Lydia Labs, ICONOsphere, PARROT9, Mousebelt, ICON DAO, and sudoblock.
Borrow Balanced Dollars against your collateral for 0% interest:
- 1.Click Borrow in the loan section and choose the amount (minimum of 10 bnUSD).
- 2.Use the position details section to assess your risk ratio.
- 3.Click Confirm and complete the transaction. You'll pay a one-off, 0.75% fee.
Some or all of your collateral will be locked until you reduce the size of your loan.
While you have an open loan, your collateral is at risk.
Your position is valued in USD, so your risk will increase if the price of your collateral drops. If your collateral is ever worth less than 118% of your loan (or a loan-to-value ratio of 85%), all of your collateral will be liquidated.
Keep a close eye on your risk ratio from the position details section.
Use the position details section to monitor your risk and make calculated adjustments for each position. It includes the price your collateral has to reach before all your collateral is locked and your position gets liquidated.
If you've deposited multiple collateral types, make sure to check the status of each position regularly.
All collateral locked. The maximum amount you can borrow, which varies for each collateral type (maximum loan-to-value ratio is 66.67% for ICX, 30% for ETH, and 20% for BTCB). To withdraw any of your collateral, keep your risk below this threshold.
Liquidated. You’ll lose all your collateral when your risk hits this level (loan = 85% of collateral value).
Redemptions. If the price of bnUSD falls below $0.90 and the Stability Fund is empty, traders may choose to redeem (burn) bnUSD in exchange 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.
Expected return. You'll earn the amount of BALN shown each day, unless other borrowers dilute the share. To increase your BALN rewards, lock up Balance Tokens.
To repay your loan, click Adjust or Repay in the loan section and reduce the amount.
The Used label indicates the maximum amount you can repay based on what's available in your wallet. If you need to buy more bnUSD to close your position, go to the Trade page.
To withdraw collateral, click Adjust or Withdraw in the collateral section, then reduce the amount. If you still have a loan, you can only withdraw up to the Locked label.
If you withdraw ICX, you can choose to unstake it (takes up to 7 days) or receive sICX, which you can swap for ICX or unstake from your wallet.