The ICON Network’s first design-led DeFi product will give 60% of its $1M+ earnings back to its users if the vote passes
Balanced announced an update titled the Geometry Release. It includes price charts, a statistics page, and transaction history. But the major highlight is a vote to distribute the $1M+ of fees generated by the platform since it launched on April 25.
Balanced is a DAO (decentralised autonomous organisation), governed by Balance Token (BALN) holders. This is the first DAO vote which, if approved, will distribute 60% of network fees to BALN holders and 40% to the DAO fund each day.
Balanced is a multi-purpose finance platform where you can take out a loan for 0% interest, swap assets, and supply liquidity. Using ICX as collateral, you can borrow a synthetic asset called Balanced Dollars (bnUSD), which is tied to the value of 1 USD. To incentivise use, Balanced distributes BALN to borrowers and liquidity providers each day.
Since Balanced’s inception, design and ease of use have been the core focus. Only 1% of crypto investors use DeFi products, so the Balanced team wanted to create a platform that’s easy for the other 99% to use, and makes DeFi accessible to people new to crypto.
Within the first 12 days, Balanced participants had created 25 million Balanced Dollars, and the platform had a TVL of $259M. 4 days later, 10% of the ICX circulating supply was held in the Balanced collateral pool.
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Here are a few use cases for Balanced:
– Leverage. Deposit ICX into Balanced, borrow Balanced Dollars (bnUSD), then buy more cryptocurrency.
– Mine Balance Tokens. Deposit ICX and borrow up to 20% against it to earn BALN, which represents ownership in the DAO and includes benefits like income from network fees.
– Make stable payments. Borrow bnUSD from Balanced, then use it to make payments without fear of the price fluctuating.
– Offer liquidity on the DEX. Supply liquidity for the Balanced exchange to earn Balance Tokens.
– Trade bnUSD. Trade Balanced Dollars to take advantage of arbitrage opportunities.
– Interest rate arbitrage. Take advantage of the 0% interest rate to borrow bnUSD, sell it for an Ethereum stablecoin, then lend it at a higher rate using the Ethereum DeFi ecosystem.
Balanced is a collaborative effort between ICX Station, iBriz-ICONOsphere, PARROT9, Mousebelt, ICONDAO, and Geometry Labs. They chose to build Balanced on ICON due to the network’s speed of settlement, tiny gas fees, and an untapped market opportunity for DeFi infrastructure.