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About Equilibrium
Key Points
- Equilibrium is a DeFi hub on Polkadot, allowing high leverage trading and borrowing digital assets.
- 12 billion EQ tokens in circulation, compatible across smart-contract enabled blockchains bridged with Polkadot.
- Founder and CEO: Alex Melikhov, an engineer in applied mathematics.
- 27 team members since 2017, experienced in building on various blockchain platforms.
- Unique features: cross-chain functionality, innovative architecture, and a unique risk management system.
- EQ token uses: collateral pledge, insurance liquidity, liquidity farming, system fees, and governance.
- Dev tools: Node-js API, block explorer,
About Equilibrium: Harmonizing the Forces of Decentralized Finance
Defining Equilibrium: A Delicate Balance
At the forefront of decentralized finance, Equilibrium emerges as a premier DeFi hub within the Polkadot ecosystem, facilitating high-leverage trading and borrowing of digital assets. By introducing reduced collateral requirements and seamless cross-chain transfers, it substantially enhances capital efficiency in the DeFi landscape. Notably, Equilibrium converges its native, decentralized EQD stablecoin with a comprehensive money market and a sophisticated, order book-based decentralized exchange (DEX).
The Circulating Supply of EQ Tokens: A Closer Look
The total supply of EQ tokens stands at 12 billion, boasting seamless compatibility across every smart-contract enabled blockchain interconnected via Polkadot. For a comprehensive overview of EQ tokenomics, please refer to
this detailed document
.
The Visionaries Behind Equilibrium: Meet the Founders
Alex Melikhov, a seasoned engineer with a background in applied mathematics, is the founder and CEO of Equilibrium. Prior to venturing into the realm of blockchain, he was instrumental in driving fintech projects forward.
Equilibrium’s team comprises 27 seasoned professionals who have been collaborating seamlessly since 2017. The engineering team boasts extensive expertise in developing on diverse blockchain platforms, including Ethereum, EOSIO, and the Substrate framework. Currently, the team is focused on building on Polkadot, driven by the vision of achieving true cross-chain interoperability and transforming Equilibrium into a comprehensive DeFi one-stop shop.
What Sets Equilibrium Apart?
Beyond its pioneering focus on cross-chain functionality, Equilibrium is distinguished as the inaugural DeFi conglomerate purpose-built to provide a seamless user experience and eradicate market fragmentation.
Equilibrium is founded upon a pioneering architecture that diverges from conventional DeFi concepts, thereby ensuring a more stable system. The core components that distinguish Equilibrium from other DeFi projects and bring this innovative architecture to life are:
EQ: The Native Utility Token Powering a Multitude of Functions
- Collateralization for borrowing stablecoins and crypto assets
- Liquidity insurance
- Farming liquidity
- Settling system fees
- Participating in system governance
Our comprehensive suite of developer tools, designed to facilitate seamless interactions with the Equilibrium ecosystem, encompasses:
Unlock seamless interactions with Equilibrium’s substrate using our Node-js API tools, empowering you to effortlessly query state and submit transactions. Explore our package on npm:
https://www.npmjs.com/package/@equilab/api
. Additionally, monitor network performance in real-time with our intuitive block explorer:
https://equilibrium.subscan.io/
. For enhanced substrate debugging and network performance analysis, utilize the Polkadot.js wallet:
https://polkadot.js.org/apps/#/explorer
.
A Sophisticated Risk Management Paradigm
This real-time monitoring system tracks overall liquidity across blockchains, aggregating individual users’ multi-asset portfolios to provide a comprehensive view of system solvency. It continually assesses portfolio volatility, the conditions of the bailout liquidity pool securing loans, and the risk profiles of individual user positions.
Dynamic Interest Rate Optimization
Most DeFi lending applications adhere to either asset utilization or governance-driven interest rate models. In contrast, Equilibrium pioneers a risk-based approach to borrowing cost assessment, drawing inspiration from traditional finance. This innovative methodology enables borrowers to benefit from flexible interest rates, which can be adjusted by providing less volatile collateral or setting higher collateralization levels, thereby affording greater financial flexibility.
Insurance Pools: A Proactive Panacea for Mitigating Bad Debt
Most DeFi projects resort to auctions to liquidate debt, but this approach falls short of being a reliable and efficient solution. Equilibrium is revolutionizing this inefficient process by introducing third-party agents, known as insurers, who provide liquidity upfront through an “Insurance Pool” and earn fees by securing loans within the system. In the event of liquidations, the need for forced auctions is eliminated, as debt obligations are seamlessly transferred from defaulted borrowers to insurers in real-time. Insurers can then choose to cover these obligations at their discretion.
The EQD Stablecoin: A Beacon of Stability in Turbulent Markets
Equilibrium’s native stablecoin, EQD, is an asset-backed stablecoin, boasting a 1:1 parity with the US dollar. By minting EQD against a diversified portfolio of assets, borrowers can significantly mitigate collateral risks. The competitive edge of EQD lies in its robust peg mechanism, reinforced by a triple-layered protection framework: Layer 1, overcollateralization requirements; Layer 2, an insurance pool securing debt positions; and Layer 3, a stability fund backed by the Equilibrium Treasury, serving as a liquidity backstop. The utility of EQD extends beyond Equilibrium, leveraging its extensive connections with other networks via the Cross-Consensus Message Format (XCM) within the Polkadot ecosystem.