Balance, use “stablecoin” to obtain high returns
Balance is an exchange platform based on the EOS network. The platform is optimized for “low handling fee” and “low slippage”, and provides a liquidity pool for assets with similar prices (such as stablecoin trading pairs).
Balance was officially launched in May 2022. It was jointly developed by the EOS Nation and Defibox. It is currently the “safest” stablecoin exchange platform in the EOS ecosystem. It provides a low-slippage, and low-cost exchange between stablecoins to meet the needs for large asset transactions, but also allow market makers to enjoy 5%-10% APY for low-risk mining in a bear market with low impermanent losses.
1. Low handling fee
Compared with the 0.3% transaction fee in Swap platform, the transaction fee of Balance is only 0.06%, which is very suitable for large-value asset exchange. Among them, 2/3 of the transaction fee goes to the market maker, and 1/3 goes to the protocol income.
2. Low slippage and low impermanence loss
Balance uses a unique function model of constant product + constant sum, and uses a constant sum model near the price equilibrium point, so that liquidity is concentrated near this point, ensuring the exchange depth of stablecoins. This design enables low-price impact swaps between similar assets, while also significantly reducing the risk of impermanent losses.
Because Balance is currently focusing on the exchange of stablecoin assets, these assets are not as volatile as other cryptocurrency assets, so the risk of impermanent losses is also greatly reduced.
3. Asset security
The security of DeFi is mainly related to the smart contracts that manage the asset pool. Balance’s smart contract has been audited by three well-known auditing companies, SlowMist, Knownsec, and Sentnl, and the code is open source.
The Balance protocol also implements multiple signatures for contract accounts, which distributes the asset management rights to multiple nodes for decentralization, and this protects the asset safely.
Related Links:
Balance audit report: https://github.com/stableex/sx.curve
Balance contract address:
Balance’s exchange algorithm:
4. Higher market-making returns
Balance provides considerable market-making income for market makers who provide liquidity. The sources of income for market makers include 2/3 transaction fees, mining rewards and incentives. Balance is expected to officially inject the accumulated yield+ rewards into the USDT+USN pool on December 8, increasing the market-making incentives, so that the market-making income of USN+USDT will also be greatly improved.
5. Swap and market making tutorial
1.Swap tutorial
https://eos.defibox.io/balance/swap
Enter the amount you want to exchange and click Swap.
2. Market making tutorial
Step 1: Stake EOS to generate USN.
Step 2: Convert USN to USDT through Balance to maximize the exchange value!
Step 3: Participate in USN+USDT to achieve 5%-10% APY.