Introducing EQ.finance: Equilibrium’s Ultimate LSD Hub

Why LSDs are important

As everyone knows, LSDs are tokens that represent staked assets. In proof of stake blockchains users are required to lock up their tokens to secure the blockchain and receive staking rewards for doing so. That’s where LSDs come in: they offer a convenient way for users to earn staking rewards while being able to redeem the value of the underlying asset in a form of a liquid staked derivative or LSD.

A key advantage of LSDs is they can be freely used in DeFi while simultaneously earning staking yield. This enables advanced strategies to earn additional rewards. For example, users can maximize staking rewards by creating a loop where LSDs are used to loan more assets, and loaned assets are liquid staked to mint more LSD tokens.

Other notable use cases include:

• using LSDs as collateral to mint/borrow stablecoins
• using LSDs in insurance pools to secure systems like Equilibrium
• providing LSDs to be borrowed by other users
• farming in liquidity pools to enable swaps between an asset and its LSD

All of these use cases are on display in our brand-new LSD hub called EQ.finance. Starting with the Polkadot ecosystem and expanding to others later on, it empowers DeFi aficionados to use their LSDs and get access to instant dollar liquidity.

EQ.finance is our new LSD hub

Yes, Equilibrium launches its ultimate LSD hub under a brand-new domain name, EQ.finance, and it opens a new chapter in the project development. We start it with offering access to dollar liquidity in the form of the interest-bearing EQD stablecoin to LSD holders on Polkadot. But our big-picture plan is to offer these services on multiple networks where LSD liquidity remains underserved.

Here is how EQ.finance works in the Polkadot ecosystem:

As you can see, the Hub allows Polkadot users to liquid stake DOT for eqDOT easily and seamlessly or use any other major ecosystem LSD wrapper and mint EQD using these assets as underlying collateral.

EQ.finance Roadmap

The Hub is a work in progress scheduled to shift into high gear and become fully operational on Polkadot in October. Here is our master plan:

This ties in nicely with the upcoming expiration of the first batch of parachains and the unlocking of DOT 100,000,000 (one hundred million). We believe this is a great opportunity for DeFi projects, specifically those offering liquid staking, to attract liquidity.

EQD liquidity vs. deadweight of staked assets

As said above, the most advantageous part of the LSD hub is instant access to dollar liquidity in the form of USD-pegged decentralized EQD stablecoin. Similarly to other interest-bearing stablecoins built on top of LSD liquidity in other ecosystems, LSD stakers who pledged liquid DOT wrappers via EQ.finance will enjoy 20+ % APY alongside having full pockets of working capital nominated in EQD.

EQD has plenty of compelling use cases we discussed in the intro. On top of that there are external pools where EQD can be used for farming rewards. EQD is already integrated into 13 major Polkadot projects, and more integrations beyond Polakdot are on their way. Also, there are currently 3 liquidity pools open with these pairs: EQD/ASTR and EQD/DOT on ArthSwap (Astar Network), and EQD/USDT on Beamswap (Moonbeam Network).

An agreement has been reached to list EQD on a major CEX. In other exciting news, Banxa is set to become the new fiat on/off ramp for the Polkadot ecosystem. Engaging with Polkadot DeFi has never been faster and easier.

That’s not even all the opportunities we bring to the table for DOT and LSD holders: expect a new farming campaign on EQ.finance with huge farming rewards up for grabs. We cater something really special and it will revolutionize Equilibrium’s tokenomics! Ensure you follow our announcements and rest assured there will be some eye-watering APRs on offer come November!

About Equilibrium

Equilibrium is a one-stop DeFi platform on Polkadot that allows for high leverage in trading and borrowing digital assets. It combines a full-fledged money market with an orderbook-based DEX. EQ is the native utility token that is used for communal governance of Equilibrium. Dollar-pegged EQD is Equilibrium’s native decentralized stablecoin, collateralized by a weighted basket of assets and used as a universal unit of value within the DeFi ecosystem. eqDOT is a liquid DOT staking wrapper that allows users to participate in DeFi on Equilibrium while earning DOT staking yield.

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