From the very beginning of our review, I want to provide you with information in the form of a table on the benefits of balance over other similar projects. After you have carefully considered this table, we can talk in more detail about some of its aspects.
Cross-chain interoperability
Most Defi projects are based on Ethereum, but Ethereum’s share in the total number of cryptocurrencies is less significant. This gives great potential for the development of Defi projects on other blockchains.
The Equilibrium project is trying to fill this vacancy as one of the first DeFi solutions in the EOS blockchain. But this project is not limited to EOS. Equilibrium allows you to pool and trade assets between different blockchains. You will be able to use EOS, BTC, ETH, TRX, XPR and others in the future. This is achieved through the interaction between chains — the ability to exchange their assets between different blockchains.
The project also solves the liquidity problem. And this is one of the main achievements of the project. Equilibrium does that by increasing liquidity via cross-chain liquidity pools. It will protect you from debt defaults in adverse markets. Let’s take a closer look at how this problem is solved in practice.
- Unique Risk Algorithm. It tracks the overall liquidity of the system in real time through a blockchain.
- Programmatic Interest Rate. The flexible interest rate adjusts system solvency and allows borrowers to choose a balance between risk and collateralization.
- Bailouts. When the monitoring algorithm indicates that liquidity is low, the system automatically incentivizes “Bailsmen” to provide more liquidity by earning more.
General possibilities of the project
Equilibrium is an all-in-one DeFi hub that has a simple design to solve complex problems such as market segmentation. Due to the fact that everything is in one place, the project has a great choice, depending on your preferences and goals. Let’s divide it into 3 large groups:
- Lend and Borrow
In lending, Equilibrium provides loans for all major crypto assets and their new EQ tokens.
On the other hand, DeFi lending protocol enable everyone to earn interest on supplied crypto assets, stablecoins and synthetic assets.
- Trade
You will be able to pool and trade cryptocurrencies, decentralized stablecoins, synthetic assets and $EQ tokens. And all this will happen in one place, without the need to switch from one blockchain to another and without wasting time and money on paying extra fees.
- Stake
This system is already known to you from other projects, but Equilibrium offers to stack cryptocurrency of your choice. Here you lock your PoS & DPoS crypto assets and EQ tokens, later you get a reward for it. This is a great opportunity for passive income. After a good analysis, you will be able to choose the asset that will bring you the best profit and you do not need to look for the best conditions on various exchanges. Everything will be here!
Tokens
Equilibrium has 3 different types of tokens.
- EOSDT is the stablecoin of the Equilibrium platform and it’s used for adding liquidity to the market while leveraging EOS and BTC collaterals.
- NUT token is the main token for the Equilibrium DeFi and its used for governance purposes such as paying fees, accessing liquidated cryptocurrency collateral, voting for block producers, managing the framework, and much more
- EQ token is the newest cross-chain token and it has the same functionality as the NUT, but have extra advantages due to its cross-chain interoperability and they include bailouts, to vote for validators and to earn staking rewards.
Major utilities of the EQ token
- Transaction and Product fees
Users pay transaction fees and product fees in EQ tokens inside Equilibrium blockchain.
- Staking and Governance
EQ holders will receive rewards coming from token inflation on EQ tokens staked to Equilibrium’s governance.
- Bail liquidity provisioning.
Liquidity providers can earn yield in EQ tokens on securing loans in the system by locking Assets including EQ tokens in Equilibrium’s liquidity pool.
Roadmap
The project is actively developing. And in the future we will be able to fully appreciate all its benefits!
The first thing I want to say is that at the moment (Mid-November 2020) there is a TGE (Token Generation Event). If you participated in the swap NUT to EQ tokens, you can claim your $EQ.
Equilibrium as a Polkadot based product will participate in the IPO (Initial Parachain Offerings). This event will take place in Q1 2021.
What is needed for this? During the parachain auction, you will be offered to lock Polkadot’s tokens (DOT) to bid for a slot in exchange to EQ tokens. For such actions you will receive a reward in the form of $EQ. DOT tokens will be blocked for 2 years.
Cross-chain DEX is planned to be launched at the end of the year. Here you will be able to trade multiple assets through the interaction between the chains.
In 2021, in addition to IPO, the following is planned:
- Synthetic assets. Lock crypto and get exposure to multiple assets
- Margin trading. Trade crypto on margin cross-chain
- Advanced market orders. Apply specific conditions or timeframe
- Delta hedging. Hedge your portfolio risks automatically
Conclusion
Equilibrium offers DeFi services such as pooled lending, borrowing, trading, and staking services. Thanks to the cooperation with Polkadot, the project reveals an unknown part of the Defi space.
Soon we will be able to see the full power of the crypto industry and will not be limited to just one blockchain or one exchange. With projects such as Equilibrium, Defi’s world will become the driving force in the modern world. Therefore it is necessary not to waste time and to start to understand this interesting, though a little and at first sight difficult subject. The time spent studying and the money invested in such projects will soon bring you their dividends.
If you are interested in this topic, you should read about Equilibrium’s cooperation with many projects such as Quantstamp, Chainlink and others. Just go to their official Medium channel.
For more detailed information you can also visit the official website of the project and other relevant channels.
Website: https://equilibrium.io
Medium: https://medium.com/equilibrium-eosdt
Twitter: https://twitter.com/EquilibriumDeFi
Telegram: https://t.me/equilibrium_eosdt_official
