1. Overview
To support Balanced’s growth and deepen bnUSD liquidity across ecosystems, we propose DAO funding to provide APY incentives for an upcoming bnUSD/USDC liquidity pool on STEAMM, a newly launched AMM on the Sui network by the SuiLend team.
This initiative aims to strengthen bnUSD’s utility, boost cross-chain adoption, and support a more robust price peg by encouraging deeper, stickier liquidity.
2. Rationale
bnUSD’s adoption and peg stability rely on its liquidity and availability in stablecoin pairs. Incentivizing liquidity in the bnUSD/USDC pool will:
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Improve bnUSD accessibility for Sui-based users and protocols
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Increase confidence in bnUSD’s utility as a stablecoin
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Expand Balanced’s presence in the broader stablecoin and DeFi ecosystem on Sui
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Lay the foundation for future integrations and routing paths
This would be bnUSD’s first use case on Sui, launched in partnership with one of its leading DeFi teams. It enables a compelling DeFi loop: users mint bnUSD on Balanced and deploy it on STEAMM to earn yield—creating a flywheel for both ICON and SuiLend ecosystems.
It also helps pave the way for future integrations with services like Pyth Network, which require broader token adoption.
3. Incentive Structure
We propose a pilot program offering APY incentives on the bnUSD/USDC pool:
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Duration: 8 to 12 weeks
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Total Incentives Requested: $10,000 in BALN
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Target APY: 10–15%, assuming ~$1M in TVL
Incentives and duration can scale with TVL growth.
4. Implementation Plan
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Coordinate with the STEAMM team for integration
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Add the bnUSD/USDC pool to the interface and activate rewards
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Monitor TVL, swap volume, and APY
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Optionally run a Hana Rewards campaign to highlight the bnUSD DeFi loop and encourage collateral deposits
5. Conclusion
This proposal is a practical next step to expand bnUSD’s utility and strengthen Balanced’s presence on Sui. We request DAO funding to launch this initiative and accelerate bnUSD adoption.