The Stability Fund allows you to exchange bnUSD 1:1 with specific stablecoins. It's used as a buffer to maintain the price of Balanced Dollars, so borrowers experience less rebalancing.
Here's how the Stability Fund works:
If bnUSD is above $1, send IUSDC or USDS to the Stability Fund to mint an equivalent amount of bnUSD (minus a 0.5% fee). Sell the bnUSD at a premium for more stablecoins, and repeat until it's no longer profitable.
If bnUSD is below $1, send bnUSD to the Stability Fund to burn it, and receive an equivalent amount of IUSDC or USDS (minus a 0.5% fee). Use it to buy cheap bnUSD, and repeat until it's no longer profitable.
To limit Balanced's risk exposure for each stablecoin, the Stability Fund has a limit of 2.5 million IUSDC and 2 million USDS. The DAO can vote to increase the limits or support additional stablecoins at any time.
Enter an amount into one of the fields. If you can trade through the Stability Fund, a dropdown with the trade information will appear below the Swap button.