Enhancing DEX and lending platform Balanced, ICON aims for efficient cross-chain transactions with new BTC/bnUSD pool.
The ICON Network has made a significant move by starting to acquire Bitcoin to enhance its Network Owned Liquidity (NOL). This initiative is aimed at boosting the liquidity of its decentralized exchange (DEX) and lending platform, Balanced. Let's break down what this means and how it impacts the broader ICON community.
Network Owned Liquidity refers to the pool of assets that a network owns to facilitate trading and lending on its platforms. By having a robust NOL, a network can ensure that there is sufficient liquidity for users to trade assets efficiently. This minimizes slippage, which is the difference between the expected price of a trade and the actual price.
ICON's acquisition of Bitcoin is part of a broader strategy to improve liquidity and enable efficient cross-chain transactions. Following its integration with BNB Chain and Arbitrum, ICON can now access Bitcoin through BTCB (Bitcoin BEP2) and wBTC (Wrapped Bitcoin). The goal is to create a unified cross-chain BTC/bnUSD trading pool. This pool will allow users to trade Bitcoin with bnUSD (Balanced Dollar) seamlessly across different blockchain networks.
In a related development, Lydia Labs and RHIZOME Labs have proposed using 50,000 bnUSD of CPS (Contribution Proposal System) funding to acquire NOL for the sICX/bnUSD pair on ICON's flagship DeFi protocol, Balanced. This proposal aims to further strengthen the liquidity within the ICON ecosystem.
Overall, ICON's strategic moves to enhance its Network Owned Liquidity through Bitcoin acquisition and CPS funding are set to bring significant improvements to its DeFi platforms, offering users a more efficient and flexible trading experience.
