One month after starting its testnet, Equilibrium is launching its money market and decentralized stablecoin on Polkadot. As DeFi’s first decentralized cross-chain one-stop-shop, Equilibrium recently raised over $5.5 million by way of token swap, and its public testnet is a major milestone representing everything that has been built so far. Users are welcome to join and experience the system firsthand.
Major assets and value for users
Equilibrium has completed the core logic of its product spectrum and added this to its testnet. Starting now, users can earn on bailouts securing loans and borrow Equilibrium’s USD-pegged stablecoin against multi-asset collateral basket. The cross-chain money market is in place with almost all its core technical components, including on-chain risk management, pricing, balances, bailout modules, deposits, transfers, and withdrawals. The lending feature for major cryptocurrencies will soon be added so users could earn on lending their portfolio.
While liquidity providers will be able to utilize foreign stablecoins on the platform, loans which use Equilibrium’s native stablecoin are cheaper, since they are not attached to fees charged by third parties. Equilibrium’s stablecoin also profits from the additional security offered by the platform’s risk-management system, which proactively manages and ensures overall system solvency on a continual basis.
Users can also become bailsmen, providing assets to safeguard borrowers in aggregate and earn interest in return. Testing these functionalities is an opportunity for participants to experience the projects’s user interface, which will allow them to simultaneously work on multiple blockchain platforms.
This newly launched functionality is available on the Equilibrium’s testnet with virtual crypto assets, including BTC, ETH, EOS, EQ, and DOT tokens. Since there are no readily-available bridges in place yet, users will be able to test out the platform crediting their accounts with a faucet mechanism that issues virtual tokens.
Plans for further participation
Equilibrium will later add token generation and support for third-party validators and oracles. In the meantime while Polkadot completes its bridging concept, Equilibrium will be building key functionalities with an ETH bridge that allows for sending EQ tokens to Ethereum’s ETH Kovan testnet.
It will later support wrapping ETH assets on Equilibrium.
The release of mainnet is planned for November. Users will be able to claim their EQ tokens and start their vesting period.
The money market with a liquidity farming functionality will be rolled out to the testnet in December. Users will be able to collateralize Ethereum-based assets and generate Equilibrium’s USD-pegged stablecoins for withdrawal to the Ethereum network (USDT/USDC/DAI). Liquidity providers will be able to farm EQ tokens and earn by providing liquidity for stablecoins available for withdrawal. We believe that liquidity farming in EQ tokens will facilitate liquidity inflows.
Equilibrium will keep its community informed of developments and new ways to connect on its website.
Global relevance for DeFi
Equilibrium’s innovations can have far-reaching implications. Supported by a grant from the Web 3 Foundation, the platform is introducing a financial pallet for Polkadot which will support every DeFi/ fintech project building on Substrate to reduce the volatility of their on-chain assets. The underlying risk-management algorithm aims to secure sustainable liquidity, which has so far plagued DeFi as a whole. Where sustainable liquidity meets cross-chain compatibility, Equilibrium’s impact on the DeFi market can reach far beyond Ethereum.