Equilibrium is an interesting decentralized finance (DeFi) project created on the EOS blockchain, with the aim of creating a high-speed, low-cost and easily accessible cross-chain DeFi and DEX system.
El world of Decentralized Finance or DeFi, It tends to give us many surprises lately, especially from Ethereum, however this may change thanks to Equilibrium, a project that seeks to create a liquidity pool Cross-chain counting on the support of EOS y Polkadot.
To achieve this, Equilibrium is committed to a series of options that seek to generate the necessary conditions to manage liquidity pools in a safe and stable way. All this while providing high-speed operations, high scalability and various tools focused on these types of markets.
Equilibrium, DeFi comes to EOS
Equilibrium is a project that was born with the firm intention of bringing the DeFi world to EOS, a blockchain that is usually known for its great scalability and the speed of its transactions.
EOS is currently one of the fastest blockchains that exist, in fact, EOS is a direct competitor of Ethereum (ETH) in the world of DApps and smart contracts, as at the level of active users and the amount of transactions or operations that are carried out. Ethereum has greater economic power, but EOS promises to have greater scalability and ability to cope with a surge of DeFi growth like the one currently being seen.
These reasons served to create Equilibrium and to choose EOS as his birthplace. Behind this project are Alex Melikhov, Josh Goodbody, Lesley Czuma, Yves Renno, Peter Sergeev, Veniamin Khrapov, Pablo Gabril, Kyle Ellicott, Dave Askey and Adar Weinreb, all of them recognized figures in the crypto world and decentralized and centralized banking.
The objective of all of them is to create a platform that allows the greatest cross-chain interoperability to facilitate DeFi operations between all these blockchains. At present, Equilibrium has already demonstrated this by bridging with Bitcoin (BTC) and Polkadot, and actively developing bridges with Ethereum, Ripple (XRP), Tezos (XTZ) y Binance Chain (BNB). This makes it clear that the project aims to generate a broad interoperation platform, seeking with it to facilitate DeFi operations.
How does Equilibrium work?
As we have already commented, Equilibrium is a project that still has parts in development, so the functionality of the platform is still incomplete. However, Equilibrium works thanks to smart contracts located on the EOS blockchain. These smart contracts are the ones that control absolutely everything within the Equilibrium system, and currently, they are the ones that handle the EQ tokens and the issuance and burning of EOSDT, The first stablecoin of EOS with a value pegged to the US dollar. This clearly speaks of what Equilibrium is a platform that aims at a decentralized management of all its operations.
However, the fact that Equilibrium is still in development leaves us without a whitepaper that fully and clearly specifies the operation of the platform. Despite this, at present, Equilibrium already has some of its systems in operation, such as EOSDT (its stablecoin) or its system of stake pool, which we will explain below.
EOSDT, Equilibrium's stablecoin
Since Equilibrium's goal is to create a multi-service cross-chain DeFi platform, one of the first steps the development team has taken is to create a stablecoin, the EOSDT.
EOSDT is the first stablecoin created on the EOS blockchain, its value being anchored to the value of the US dollar. The idea is to create a stable medium of exchange of value that allows users an option to house value and protect it against the volatility of the markets. At this point, the central idea of EOSDT is the same as DAI: a reserve currency and stable exchange of value, for a multiple DeFi ecosystem.
In this way, those who participate in the liquidity pools and the different Equilibrium options will always be able to save their assets in a stable currency that helps mitigate the effects of cryptocurrency volatility. A point that makes sense if we take into account that Equilibrium seeks to generate interaction between different blockchains through cross-chain operations.
Currently, EOSDT can be generated using EOS and BTC as collateral with a minimum of 130% overcollateralization.
Staking pools, win by staking EOS, EOSDT and NUT
Another of Equilibrium's systems that currently work is its staking pool system that allows you to earn interest on your EOS, EOSDT and NUT tokens. This system allows stakers to earn passive income for keeping their tokens. At this point, the amount of interest you can earn from staking is related to the total number of tokens you lock, your commitment time, the total amount of collateral in the stake pool, and the commission sent to the smart contract.
The minimum amount to participate in the staking system is 1 EOSDT or 2 NUT, while if EOS is used, no minimum amount is required. Again this system is completely decentralized and at all times you retain control of your funds.
How much do you know, cryptonuta?
Does Equilibrium's cross-chain operations model depend on Polkadot?TRUE!
Eqilibirum's cross-chain capability depends on Polkadot's cross-chain capabilities, something that is already in place on networks like Ethereum.
What's to come
Equilibrium developers are working to transform the platform into a DeFi benchmark within EOS, and for that reason they expect most of the functionalities to be up and running during 2021. We are talking about Equilibrium being able to create liquidity pools, lending / borrowing systems (loans), bailouts, margin trading and cross-chain DEX operations. Despite this, Equilibrium enjoys a good acceptance, in fact platforms such as Bancor allow EOSDT to be handled natively today, which tells us that the project has a great future ahead of it.
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