Balanced Launches Cross-chain Stablecoin Loans

Balanced has recently launched cross-chain stablecoin loans, enabling users to borrow bnUSD using various cryptocurrencies as collateral across multiple blockchains. This new feature allows for greater flexibility and accessibility in decentralized finance (DeFi).

Key Features of Cross-chain Loans

• Multiple Collateral Types: Users can deposit collateral in the form of AVAX, BNB, BTC, ETH, INJ, and sICX. These assets can be sourced from blockchains including Avalanche, Arbitrum, Base, BNB Chain, and ICON.




• Isolated Loans: Each loan maintains a separate risk profile based on the asset and blockchain used, thereby enhancing security and risk management.




• Flexible Borrowing: Users can deposit collateral on one blockchain and receive bnUSD on another, facilitating seamless cross-chain transactions.




• Low Fees: The borrowing process incurs a minimal fee of 0.2% along with a 2% annual interest rate, making it an economical choice for users.

About bnUSD

bnUSD, or Balanced Dollar, is a decentralized stablecoin that aims to maintain a value equivalent to 1 USD. It is over-collateralized, ensuring that the total supply does not exceed the value of the assets backing it. Users can utilize bnUSD across any blockchain that Balanced supports, allowing for liquidity provision and earning opportunities through the Balanced Savings Rate, which currently offers around 15% in rewards.

How to Access Cross-chain Loans

To open a cross-chain loan, users need to:

1. Visit the Balanced app and connect their crypto wallet.


2. Deposit a supported collateral type on their chosen blockchain.


3. Select the amount of bnUSD to borrow and the blockchain on which to receive it.

Additionally, transactions originating from blockchains other than ICON will incur a variable cross-chain fee.

This launch signifies a significant step in enhancing the usability and functionality of DeFi platforms, allowing for more integrated and efficient financial operations across different blockchain ecosystems.

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