Mar 18
Announcing eqCENTRAL PROTOCOL
In short: eqC is a decentralized protocol based on the EQC token — collateralized and backed by the eqCENTRAL DAO. EQC will be the reserve currency on/of Fantom. Currently, a lot of assets, such as staked assets from various OHM forks and tomb forks, can’t be used. eqC is here to allow you to use these assets.
We are happy to announce the eqCENTRAL! Here is an article to explain its utility.
Currently, a lot of assets, such as staked assets from various OHM forks and tomb forks, can’t be used. eqC is here to allow you to use these assets.
We will create partnerships with launched or prelaunch projects, willing to give their tokens cold power.
You will be able to use these assets as collateral to mint $EQC, the official stablecoin of the eqCENTRAL.
Since $EQC is backed by staked tokens, the value of your collateral should always increase (maybe not in USD value, but always in tokens).
So what is $EQC you may ask? $EQC is a USD pegged stable coin. As with most stablecoins, it will be traded on markets with other stablecoins such as USDT, DAI, and USDC.
How does “eqCENTRAL” work ?
Here is how you can benefit from eqCENTRAL,
- Deposit your collaterals on eqCENTRAL.
- You get assigned a debt allocation (you, the borrower).
- You get $EQC tokens in your wallet.
- You take your $EQC wherever you like.
How to get back your collateral ?
To regain your collateral, you will need to repay your debt plus your interest incurred to be allowed to withdraw your collateral.
The $EQC token
The $EQC token is a USD pegged stable coin that is backed by staked assets. $EQC tokens are minted by the Peak-FTM LP HOLDERS on Fantom, and only after being collateralized are they injected into the circulation.
How much $EQC can I get?
The amount of $EQC depends on two factors for each collateral you decide to deposit. One is the Loan to Value ratio (LTV), and the other is the initial maximum $EQC allocation to that collateral.
Everything clear? Let’s run through a quick scenario.
Tommy Chan is a rich crypto owner who owns 200,000 FTM, and he is a fan of PEAK FINANCE. He has decided to deposit them into the staking pool, so he can earn high returns.
Tommy Chan now owns $PEAK-FTM-LP tokens which have a current value of $200,000 and are increasing in value. Tommy Chan gets bored and wants to use this money to buy himself a home.
How can he do this?
Tommy Chan deposits the $200,000 worth of $PEAK-FTM-LP into eqCENTRAL, he then chooses how much risk he wants to take on. As he doesn’t want to take much risk, he mints 10% of his collateral. He then clicks borrow and the protocol sends him 10,000 $EQC.
(He will be paying an interest rate of 0.8% because of his collateral choice).
He then goes and asks his home builder what stablecoin he prefers.
The builder says USDT, so Michael Snow swaps his $EQC for USDT. So he now has more or less 10,000 USDT.
He pays 5,000 $EQC for his home and uses the remaining $5,000 to buy home furniture. Remember his $PEAK-FTM-LP is increasing in value while he is seated in his home.
The centre $EQC token
$EQC is the CENTRAL token with a maximum supply of 233,190,000 million (The absolute zero). It will be live on the Fantom network.
The distribution of the $EQC tokens is as follows:
- 73% (170,228,700 EQC): Global Farming Incentives
- 20% (46,638,000 EQC): Team allocation (4 Year Vesting Schedule)
- 7% (16,323,300 EQC): Initial DEX Offering to PEAK-FTM-LP holders
What does the $EQC token do?
The main function of the $EQC token is to stake it in eqCENTRAL to obtain sEQC tokens, which have benefits.
- They grant holders a claim on fees generated by the protocol.
The protocol fees, at launch, derive solely from interest on borrowed $EQC. As debt is paid in $EQC, fees are collected. They are distributed as follows:
- 75% are used to purchase $EQC tokens that go to sEQC token holders.
- 20% is allocated to the governance treasury that will be used to incentive $EQC liquidity pools.
- 5% is redirected to a multisig treasury that will be used when market conditions require intervention.
Risks of Using eqCENTRAL
Risk 1
With all lending and borrowing protocols, there is a chance of liquidation. Liquidation occurs when the value of collateral drops to a predetermined point. Your collateral isn’t enough to cover your debt. This predetermined point is shown once you open your debt position on eqCENTRAL. That’s why we will add a maximum borrowing percentage for each different tokens listed on eqCENTRAL.
If your position is liquidatable, a third party can choose to pay off your debt in exchange for your collateral plus a liquidation fee. If there happens to be any collateral left, users can withdraw it.
Remember that each collateral has an independent market on eqCENTRAL! This is a powerful feature because users can select which assets they are comfortable taking on more risk with, and which they are not.
Risk 2
eqCENTRAL uses smart contracts and thus like with any other DeFi project there are chances of smart contract bugs and exploits.
TLDR
- Interest-bearing tokens are the collateral
- Each collateral has independent debt
- $EQC is USD
- $PEAK-FTM-LP is staked for $sEQC
- $sEQC is for fee-sharing
- eqCENTRAL is the Central lending protocol
