Equilibrium — Report by Crypton Research ENG
Equilibrium is a cross-chain money market that combines loans with the generation and trading of synthetic assets. Equilibrium uses a novel approach to pricing in the chain and calculating risk, which sets Equilibrium apart from other well known DeFi projects. It allows users to bet and earn, borrow, increase liquidity in synthetic assets and decentralized stablecoins.
TEAM OF THE PROJECT:
President of Equilibrium. He is an engineer of applied mathematics. 15 years of experience in business and fintechs. Before entering the blockchain space, he focused on fintech — mainly payment systems, and has always dealt with technology and architecture. Founder and co-founder of companies such as Changelly, Oxygen trade and EOSDT. Cryptocurrency enthusiast since 2013. He became more pragmatic about blockchain after co-creating his first crypto business in 2016. Ethereum and EOS smart contract specialist. DApps fanatic. He received an engineering degree from Moscow Energy University and held leading positions during his work history. Author of three articles on cointelegraph.com
She has extensive leadership experience in managing and advising in startup environments, non-profit and corporate organizations in 7 countries. She has advised large companies supporting bluechip technology, such as the METRO Group, and a leading blockchain startup — Insolar. Doctor of Science from the Free University of Berlin in the field of political science and economics.
A graduate of the University of Chicago. Data Scientist. Master degree in Financial Mathematics. Owner of Y$M advisors LTD dealing with: big data analytics, micro and macroeconomic analyzes, analysis and risk management of investment funds. An enthusiastic programmer with resources in:
- quantitative skills: ML — financial mathematics — algorithmic trading — statistics — economics programming
- IT skills: Java Spring, Python, C # — MySQL, SQL, Mongo — Kubernetes, GCP
As linkedIn says on its profile, it is eager to take on new challenges. Team player and solution finder.
He managed the development of many projects and applications, including new collateral trading and risk mechanisms, automation of OTC order placement, integration with the bank’s internal departments for financing, and mobile trading applications. A graduate of outstanding banks. He was a senior analyst at one of the largest corporate banks in Russia — Alfa-bank.
He specializes in DeFi projects. Works on Ethereum, Eos and Polkadot. SCRUM Master who has developed high-load projects, automated marketing and programs for national trade exchanges. Over 10 years of experience as a developer. A graduate of Moscow State University, where he obtained an engineering degree as a programmer of mathematical systems.
He has extensive experience, from network security audits to the development of brokerage infrastructure. Working with blockchain technology since 2013, he charted market exchanges and mastered smart contracts on the BitShares blockchain, the predecessor of EOS.
Entrepreneur, co-founder of ReadWrite and Topio Networks. Global speaker known incl. with TEDx, strategist, author of publications and technologist with over 15 years of experience in digital transformation, IoT, transport / mobility, broad experience and familiarity with blockchain / DApps / FinTech technology, artificial intelligence, digital health, smart cities.
“A breakthrough experience in blockchain technology and the financial sector. We combine invaluable experience in innovative technologies and business logic to be a pioneer in the full-scale implementation of the next generation of money markets. “ — Equilibrium.io team
Each of the individual on the Equilibrium team brings experience from various industries to the project, including economy, programming and blockchain technology. With such background, the project can be defined as professional and transparent. Cryptographic projects with such background have a good chance of success in the “crypto world” and stand out from other projects, whose Achilles heel is often an anonymous team.
The current equilibrium team has been working together since 2017, where they worked on the ethereum blockchain. In 2018, they started working on EOS. In April 2019, they launched the first EOS-based decentralized stablecoin as the first product in the Equilibrium product line called EOSDT. Today, EOSDT is the most liquid decentralized stablecoin and the largest DeFi project on EOS, with a total value of over $ 14 million locked in smart contracts and over 1,000 user positions generated.
Now the project is expanding on Polkadot for true cross-chain interoperability and turn Equilibrium into a full-fledged DeFi center.
PROJECT ADVISORS:
Ecosystem Development Lead at Parity Technologies. Previously co-founder at Archon (led fundraising — ~$2.1M seed round, BD and research). Former partner at Bica Capital. BSc from UCLA, MSc from Stanford.
Senior Research Analyst at Parity Technologies. Former engineer at Lockheed Martin & Boeing. BSc Aerospace, Aeronautical and Astronautical Engineering
ABOUT THE PROJECT:
Equilibrium is a project currently built on Substrate, using this technology to maximize combined liquidity in digital assets and protocols. The project will be run as a parachain on the Polkadot blockchain. The project team was invited to a sixth batch to integrate on Rococo, the Polkadot test network for parachaines. It is a testing ground, a vestibule for projects that, after successful integration*, will go to Kusama, and then to Polkadot.
*Integration is likely to be completed in a few weeks.
The project combines a lending platform with a decentralized cross-chain exchange — they complement each other — increasing liquidity in cross-chain liquidity pools and enhancing ecosystem stability. Users can trade synthetic or derivative assets and take advantage of interchain liquidity for ETH, BTC, XTZ, ERC-20, EOS and other assets. The combination of innovative loan products with a decentralized exchange makes Equilibrium the most comprehensive DeFi platform.
Equilibrium aims to help other projects in the ecosystem by offering them to use their financial palette. It will be for anyone building complex decentralized financial solutions (DeFi) and financial technologies (Fintech) using Substrate technology.
The financial palette will be a convenient tool for anyone building DeFi dApps on Substrate, and especially for those teams that want to go beyond arbitrarily set risk indicators. As such, it provides a valuable service and support for financial applications looking to upgrade and extend their reach beyond Ethereum.
Users will experience all important DeFi use cases in one place (on an Equilibrium substrate). Here are some examples:
- Borrowing and trading stablecoins
- Borrowing and trading other crypto assets
- System protection and earning interest on crypto assets
- Borrowing and earning interest on crypto assets
- Earning PoS blockchain rewards by staking
- Equilibrium management and earning nomination/validation awards and inflation awards
- Transfer of value/assets between chains
- Decentralized margin trading
- Creating and trading synthetic assets.
- Portfolio risk management and hedging.
Users will benefit from a significant cost reduction compared to using DeFi in ethereum network, as well as unifying different protocols without the hassle of switching / transferring funds between them.
Equilibrium has received a grant from the Web3 Foundation for the development of its project, especially the Equilibrium Financial Palette.
Equilibrium Financial Palette is an open source Substrate module that subscribes to external price sources via oracle, collects asset prices and calculates financial ratios based on the information gathered.
It provides the means to calculate various cryptocurrency statistical measures in users’ wallets for risk calculation and financial modeling purposes.
There are three key user roles in the Equilibrium system — lender, bailsman, and borrower. Traders are a separate group.
- lenders can stake assets and earn passive income
- bailsmen can take risks by securing other users’ loans in the system with their assets and profits from farming and staking
- borrowers can borrow cryptocurrencies and generate synthetic assets or stable coins, all with an automatically defined APR
- traders can trade across chains using fast, low-cost transactions as well as trade high leverage up to 100x.
The platform will also feature staking and liquidity farming, which will pay passive income to people who place digital assets on the platform. The point is that users provide some of the different currencies that make the financial services package work and are paid a premium for it. 12 million EQ tokens are allocated to liquidity rewards, which is 10% of the total supply.
INTEGRATION:
As you can see at the moment, Equilibrium is integrated with blockchains: EOS and BITCOIN. The next milestones will be the connection with Ethereum, Binance Smart Chain, Tezos, Tron, Cosmos.
DEX:
Equilibrium is working on a decentralized exchange available on the platform that will allow leverage and trading in derivatives. This will allow multiple assets to be borrowed or accounted for in network liquidity pools. They are currently actively working on this with steps to implement the loan facility, handle margin calls and establish an order book in the chain.
The planned launch date is mid-2021.
TOKENOMICS:
The EQ token is Equilibrium’s native utility asset in this interoperable money market, widely used across the entire system and the applications that run on it. Initial supply is 120 million EQ tokens, fully compatible with any blockchain connected to Polkadot. The amount of EQ tokens will increase slightly each year due to annual inflation of 2.5%.
WHAT WILL THE TOKEN EQ BE USED FOR?
1. Bailouts and liquidity
EQ tokens are facilitated by an innovative liquidation mechanism called bailout. Bailouts are much more reliable than a regular DeFi auction. Users get profit by securing loans on the system and locking crypto assets in Equilibrium rescue pools in advance (the EQ token is one of the accepted assets). Provision of such liquidity in advance ensures that there is always sufficient collateral in the system to liquidate the borrower’s debt.
2. Management
Equilibrium is driven by a set of system parameters that can be modified using a decentralized chain voting process. EQ token holders can vote.
3. Liquidity farming
Equilibrium tries to attract liquidity to its ecosystem and has set aside 12 million EQ tokens (10% of the initial supply) to encourage cryptocurrency users to inject assets into their platform. As asset availability largely depends on the availability of cross-chain solutions, Equilibrium will start using the liquidity farming pool to reward users. The liquidity farming pool will distribute EQ tokens to both borrowers and lenders based on their relative size of liquidity.
Part of the tokens will be donated to the development of DEX, which includes incentives for market makers, periodic rewards for the most active traders and a referral program.
PARACHAIN LEASE OFFERING.
PLO will take place in two phases, in two different variants.
PARTNERSHIPS:
SUMMARY OF THE PROJECT:
PROS:
- a project resolving issues of inter-chain financing
- an extensive system of rewarding users
- good partnerships
- open, experienced and well-coordinated team for several years
- web3 foundation grant
- based on polkadot blockchain
CONS:
- no venture capitals (update 08.04.2021: Equilibrium has closed a Series A round of financing, securing $2.5 million from a uniquely multinational collection of investors)
- no discord and straight communication via e-mail
INFORMATION SOURCES:
WEBSITE → https://equilibrium.io/en/cross-chain
WHITEPAPER → https://equilibrium.io/docs/Equilibrium_WP.pdf
TELEGRAM → https://t.me/equilibrium_eosdt_official
MEDIUM → https://medium.com/equilibrium-eosdt
TWITTER → https://twitter.com/EquilibriumDeFi
GITHUB → https://github.com/equilibrium-eosdt
YOUTUBE → https://www.youtube.com/channel/UCJrtR-r0xR-ZadeQ7KS-seg/videos
LINKEDIN → https://www.linkedin.com/company/equilibrium-eosdt/
Research: Wojtek || Crypton Research @wojtaszekk
