Balanced: 5 competitive advantages

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Before we released the Balanced white paper, we did extensive research into existing DeFi platforms so we could find pain points and solve for them.

Balanced won’t be the first DeFi platform, but we do plan on making it the best. Our competitive advantage comes from:

  1. An easier user experience
  2. 0% interest rates
  3. Faster and cheaper transactions
  4. A clear price tracking mechanism for pegged assets
  5. Balance Token mining with clear value and ownership rights

On top of everything mentioned above, Balanced is a product built by ICX holders, for ICX holders. Learn more about the benefits of Balanced in Balanced: The one-stop-shop for ICX holders.

1. Easier user experience

Our goal is to make Balanced so easy to use that both DeFi experts and crypto newbies can participate with confidence. To do this, we need to simplify the interface as much as possible. There are a lot of variables to be aware of when borrowing from Balanced, but instead of burdening our users with the math, they can use the sliders as their calculator.

Good design is iterative, so we’ll continue to do ongoing testing with both traders and new users. So far, the results have been positive, and we’ll lean more on discussions in our Telegram channel to help us refine the important details as we get closer to launch.

2. 0% interest rates

3. Faster and cheaper transactions

Balanced operates on the ICON Network: a fast, secure, and decentralized blockchain platform, where transactions don’t get priority based on how much they pay. Transactions are fast and cheap, making Balanced just as accessible to the little guy as it is to everyone else.

4. Clear price tracking mechanism

If ICON Dollars ever fall below $1 on an exchange, traders can buy them for cheap and then swap them for $1 worth of ICX (minus a small fee) on Balanced. This guarantees that our assets stay at a steady value, rather than relying on the faith of traders and indirect measures.

5. Balance Token mining

Balanced will be a DAO from the start, owned and operated by users who mine and stake Balance Tokens. All profits earned from fees get distributed to Balance Token holders, and token holders get to make decisions for the platform, like which asset to add next, and adjustments to fees, collateral ratios, interest rates, etc.

When you use Balanced, you’ll own a piece of it.

Risks

  • Smart contract risk: We will have audited contracts, but there’s always the possibility of a bug or vulnerability in a smart contract that compromises user funds. It would not be possible to recover them.
  • Liquidation risk: If your collateralization ratio drops below 150%, you will lose all your collateral, but you will get to keep any borrowed assets.
  • Rebalancing risk: When you deposit ICX into Balanced, it’s used to keep the value of Balanced pegged assets stable (i.e. keeping ICD pegged to $1). Some of your collateral will be sold over time, but it will also lower your debt by an equal amount.

If you’re confused about any of these risks, talk to us on Telegram.

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Balanced is a DAO on the ICON Network that creates tokens pegged to real-world assets.

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