Equilibrium.io AMA with Alex Melikhov
Eric: Welcome @hello_melikhov — He is the CEO of Equilibrium.io, a cross-chain all in one DEFI platform!
Alex: Hey everyone! Thanks for joining us today. I’m really excited about today’s AMA and an opportunity to share some important insights on what we are building at Equilibrium
Eric: To kick things off. Can you tell us about yourself in terms of the path you took in your early career to finding out about crypto? @hello_melikhov
Alex: Sure. I’m Alex, the CEO at Equilibrium, the leading cross-chain DeFi project. If to start from the roots, I’m an engineer in applied mathematics by training. Before I came into the blockchain space I was focusing on fintech — mostly payment systems and gateways. I was always on the tech and architectural side of things
Eric: it’s like you were built for DEFI
In your own words, what is Equilibrium.io?
Alex: Equilibrium is a one-stop-shop for DeFi users. You can utilize all DeFi primitives you got used to on Ethereum but in a cross-chain manner and risk-less. It includes pooled lending, decentralized stablecoin, and synthetic asset generation, plus trading
It is built on Polkadot and inherits advantages of its out-of-the-box cross-chain interoperability
Eric: Tell us how the project began, I understand it was an EOS project in the beginning, correct?
Alex: Actually our team is very experienced in building financial DApps and I’d say we are blockchain agnostic. Even before EOS, we were developing on Ethereum in 2017
Yes, the current product line on Polkadot is a logical extension of what we have built on EOS so far
Eric: That shows a breadth of experience and demonstrated skill, I think
What are some unique features found in Equilibrium vs competitors?
Alex: There are several. Besides true interoperability (thanks to Polkadot base layer), there are an advanced on-chain risk management system, a programmatic adjustable interest rate, and bailout mechanics that is opposed to auction liquidations (like in most of Ethereum-based DeFi — MakerDAO, Compound, AAVE)
I can briefly explain what it’s all about)
Eric: Please tell us about the Bailout mechanism and Bailsmen
Alex: Sure. Bailsmen play an important role in Equilibrium. They are securing loans in the system by bringing liquidity into the bailout pool. They are taking risks of liquidations in advance before liquidations actually happen. They are rewarded for that with a significant portion of the interest rate paid by borrowers.
In the case of liquidation, debt and collateral get distributed to the bailsman pool. There it gets further divided between individual bailsmen, given their relative liquidity.
Eric: So Bailsmen add more collateral to positions in near liquidation points?
Alex: Not exactly like that. They are taking debt obligations in case of margin calls
Eric: got it.
Alex: But their funds efficiently act as additional collateral to recapitalize these loans
Eric: So tell us about the token. What is the ticker, is it erc20? how many supply, what does it do?
Alex: Yeah, we are introducing a new utility token called EQ which will have a bunch of utility in our product line. Maybe the most important one is an opportunity to use it as bailout liquidity to earn yield and collateral to take out loans.
Its supply is 120M and it’s initially based on our substrate that will eventually become a Polkadot parachain
Eric: When is this out and how will it come into existence? is there a fundraise?
Alex: We have conducted a token generation event last week. Those who participated in our NUT/EQ token swap in September can now access their allocations. We are expecting Uniswap pool and listings on exchanges after we launch ETH bridge in production. So there will be an opportunity to acquire tokens from the market.
Also, we are planning an Initial Parachain Offering. DOT holders will be able to contribute their DOTs for our parachain slot at auction and get rewarded in EQ.
Another option is participation in our liquidity farming program. Active users will be rewarded in EQ for liquidity provision
Eric: Multiple ways to be part of the Equilibrium ecosystem!
We are opening the floor to community questions. Please prepare to paste your claimed ones via Twitter.
Q: Can you give an overview of $NUT/EQ Token tokenomics?
Will the design of the token rise and fall with the success of the platform, does it include any scarce paths, such as equity, storage, or burning?
A: You can find details on the EQ token economy here https://equilibrium.io/en/eq-token.
As I said EQ has a lot of utilities on the platform. Activity around them will highly depend on the platform’s success. But I should admit that EQ’s and the project’s traction are organically tighten — a lot of EQ applications are coming along with token distribution and its circulation. From this standpoint, the EQ token economy seems to us very well balanced.
Opportunities to use EQ as collateral or for bailouts to earn yield and liquidity farming on top should have a positive impact on the EQ’s ecosystem
Regarding scarce paths, I’d like to emphasize our token swap that was designed to incentivize our EOS fans to start using our Polkadot-based product right after their launch. As you know we have succeeded with the token swap when 25% of the total EQ supply was secured by participants with over 300 participants.
Q: What are the advantages of supporting EQ with Polkadot’s technology and how will it make a difference in driving the decentralized cross-chain money market?
A: We believe that Polkadot is one of the most advanced blockchain platforms on the market now. They have the most qualified tech team that I’ve ever known in the space. It is designed to solve the most common hurdles of blockchain networks — lack of interoperability, high transaction costs, congestions in network capacity, etc. Also, its developers paid great attention to its decentralization and code effectiveness. All together it makes Polkadot the most eligible platform for Equilibrium as the most advanced cross-chain money market.
Q: How does EQUILIBRIUM DEFI partnership with REEF DEFI tackle the issue of DeFi Liquidity?
A: We at Equilibrium think that liquidity is a cornerstone for every DeFi project. We are very much focused on getting aboard liquidity providers and obtaining a decent amount of initial liquidity. We believe that our liquidity farming program will also help us with that. Integrations with liquid DeFi platforms seem to us crucial for liquidity aggregators like Reef. However, it works oppositely as well. So our collab definitely brings a lot of synergies.
Q: Where is the Equilibrium road map now? Are all targets in accordance with the current road map? and what are the next steps that will be taken in the future?
A: We have recently released our whitepaper — you can find it on our website at https://equilibrium.io/ and it will give you an overall impression of our plans. Regarding particular timelines, you can check it here https://equilibrium.io/en/about but we will slightly amend it according to the current dev progress.
Q: What is “3-layer proactive system solvency
protection”? Can you talk more about it? Is it really safe?
A: We have three layers of system protection in place:
1 — over-collateralization (like in most DeFi projects)
2 — bailout mechanism (I explained it before. In short it is securing loans by providing bailout liquidity in advance to ensure system stability)
3 — Insurance policy (it’s our liquidity in the treasury that might be used for recapitalizing the system in case of black swan events)
We think it works better than anything on the market right now.
Q: How do you make users believe that this is a high-quality, long-term project? Would you please share 3 main points to convince me and other angel investors to invest in this project for the long term?
A: We are highly committed to the development of Polkadot being participants in the Substrate builders program and we also received a grant from Web3 Foundation recently. DM me, will be happy to schedule a call for an online presentation if you are considering investments in our project.
Q: A lot of people will want to know what the strength of Your Project is but I want to know the weaknesses and problems Your Project faces? How do you plan to solve it? What is your background and how did you come to the idea to create your project?
A: Great question. We are slightly concerned about timelines on the parachain tech launch. You probably know that they have been already pushed back several times. But we are mitigating this risk by building our system as a stand-alone substrate. We will even integrate the ETH bridge as a pallet. I’ve shared some details on our background. Maybe also worth mentioning that I’m in the crypto space since 2016 being also a co-founder of Changelly, one of the biggest instant crypto exchanges on the market.
Q: Can you list killer features project that makes it ahead of its competitors? What is the competitive advantage your platform has that you feel most confident about?
A: True interoperability
Bailout mechanics (vs. auctions and their problems we saw in MakerDAO)
Maximized liquidity (thanks to the connection with multiple blockchain ecosystems and liquidity farming program)
All DeFi use cases in one place
Q: What are the plans to educate and raise awareness and adoption among the community to make more people understand about the project easily?
A: We are working on simple messaging and tons of educational content in multiple languages (including Chinese). Btw you guys can also join our ambassador program to help to spread the word. Join our Telegram community to learn more details https://t.me/equilibrium_eosdt_official
Q: What assets can I trade on multiple platforms on margin and using advanced order types? What platforms is Equilibrium interoperable with?
A: We are working on Ethereum integration first of all. We think it’s the most important to have a bridge with this ecosystem that holds over 80% of DeFi now. We will also integrate a BTC bridge then. There are others on our roadmap: Binance Smart Chain, Cosmos, EOS, Tezos.
Eric: Okay, great questions. Very well built out project. Very much looking forward to the Ethereum integration.
@hello_melikhov Please invite everyone to your official channels for further questions
Alex: Sure. You can find us at
Thanks very much for your questions. I had a lot of fun today
Eric: Awesome stuff. Good luck and I will be sure to get some of the tokens and be part of this ambitious project.
Alex: @ERCSU thanks for having me
Good luck to everyone!