Balanced Dollar

Halal Rating :
Comfortable
Last Price $1.0 Last updated:
Rank 10629
1D Change -1.01 %
Market Cap $6.23m
Circulating supply 6,261,905
Maximum supply None
Crypto Overview Crypto Impact

Crypto Overview

Categories
  • Stellar Ecosystem
  • ICON Ecosystem
  • Solana Ecosystem
  • Injective Ecosystem
  • Sui Ecosystem
  • Optimism Ecosystem
  • Base Ecosystem
  • Rehypothecated Crypto

Overview

Balanced Dollar (bnUSD) is a stablecoin that operates on the ICON blockchain network. It is designed to maintain a 1:1 peg with the US Dollar through an overcollateralized system where users can mint bnUSD by depositing ICX (ICON's native token) as collateral.

Purpose and Utility

The primary purpose of bnUSD is to serve as a stable medium of exchange within the ICON ecosystem and provide liquidity for decentralized applications. Users can mint bnUSD by locking up ICX at a collateralization ratio, typically above 400% to ensure stability.

Business Model

The system operates through smart contracts that manage the collateralization and liquidation processes. When the value of collateral falls below the required ratio, positions can be liquidated to maintain the dollar peg.

Real-World Adoption

bnUSD has seen adoption primarily within the ICON ecosystem, being used in various DeFi applications and as a trading pair on decentralized exchanges. However, its usage remains relatively limited compared to major stablecoins.

Development Activity

The Balanced protocol continues to receive updates and maintenance from its development team. The platform maintains active governance through the BALN token, which allows stakeholders to participate in protocol decisions.

Crypto Impact

To assign a comfort level investing in Balanced Dollar from a halal perspective we need to determine whether it has a net positive or negative impact.

Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Balanced Dollar.

If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.

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