Add BUSD to the Stability Fund & lower IUSDC Cap

In order to support both cheaper arbitrage and utility of ICON Bridge, I’d like to propose we add BUSD to the Stability Fund from BSC <> ICON as well as lower Balanced’s exposure to Orbit Bridge to only 250,000 IUSDC. BUSD can be sent via ICON Bridge directly in-app, and the cost of arbitrage is much lower being able to use PancakeSwap on BSC rather than needing to use the Ethereum network with high gas costs.

Here is my specific proposal, I’m open to tweaking numbers based on feedback:

1.) Lower IUSDC threshold to 250,000
2.) Add support for bscBUSD from ICON Bridge with a limit of 2,000,000


What happens when the limit is below the outstanding? Does it just run in redeem mode until it goes under the cap?


Yep that’s correct. You would only be able to redeem.

Initial values seem good to me. Was thinking if this was a good time to try asymmetrical fees as well. So it is cheaper for people to get back into IUSDC and remove it from the stability fund.

So the change would be bnUSD → stable becomes cheaper, stable → bnUSD becomes higher or still the same. In my head this would mean a better peg below 1 and slightly worse above 1.


I could be open to lower fees across the board to increase volume and tighten the peg, but maybe a separate proposal would be better. As for getting the IUSDC out of the fund, if we ever really need to we could set fees to 0, or even earn money, for taking the IUSDC out of the pool.

Thankfully I heard from Orbit Bridge team and they are beginning to look into Java migration, so I don’t think it’s a huge issue for now.

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Yeah agree as long as USDC is not on a timeline of getting deprecated we don’t need to worry about this right now.

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