Wolfonaire Chatbox : AMA With Equilibrium (28th April, 2021)
Hello! Wolfonaire Family & Crypto Enthusiasts!
We recently hosted an AMA With Equilibrium on 28th April, 2021 at 1.00 PM UTC. This session was phenomenal. If you have missed then here is the precious AMA transcript, for those who missed the live session this will enlighten you for sure…
Guest Speaker :
Mr. Alex Melikhov | CEO, Equilibrium
(Note: This is the transcription of the event. Please note that the transcript was edited for comprehensibility and coherency, while the content was not changed.)
Alex : Sure! Let me introduce myself. I’m Alex, the Founder and CEO of Equilibrium. I’m an engineer in applied mathematics by training. Before blockchain, I was focusing on fintech — mostly payment systems and gateways. I have always been on the tech and architectural side of things.
I came to crypto when we co-founded Changelly in 2016, and it remains one of the largest instant crypto exchanges in the market today.
My current team has been working together since 2017 and we were building on Ethereum in those days. In 2018, we kicked off the development on EOS. In April 2019 we launched the first decentralized EOS-based stablecoin as the first product in Equilibrium’s product line, called EOSDT.
Today EOSDT is the most liquid decentralized stablecoin and the biggest DeFi project on EOS, with over $14 million total value locked in our smart contracts, and over 1,000 user positions generated.
Now we are developing on Polkadot to ensure cross-chain interoperability and turn Equilibrium into a full-fledged DeFi hub.
Wolf : You have really great experience… Good to hear
For our members who are not already familiar with the project,can you give us a very high-level overview of what #Equilibrium is and what competitive edge it brings to the Crypto Universe?
Alex : Equilibrium is a one-stop-shop for DeFi users — it consists of a comprehensive lending platform and a professional-grade, cross-chain DEX. Think of it as a place where you can make use of all the functionality that DeFi primitives on Ethereum can offer, but in a cross-chain and risk-free manner.
In spite of the fact that there are other lending platforms, there are several ways in which Equilibrium is unique and valuable:
We are a one stop shop, offering all key DeFi use cases in one place.
We use three key elements that no one else offers:
- Risk algorithm: monitors & corrects liquidity continually in real time. Incentivizes bailsmen & liquidity providers to add more liquidity if needed.
- 2) Programmatic interest rate: users can choose their collateral ratio — & influence their interest rates (these are not fixed)
- Bailouts instead of forced auctions to resolve bad debt:
We recall what happened on Black Thursday with Maker DAO in 2020. That was because auctions are a risky mechanism — especially in adverse markets. That’s why we have replaced them with bailouts instead — thereby minimizing your risk
Wolf : Awesome 👌🆒️🙌… How do holders of the #Equilibrium benefit in the ecosystem? What power within your model do individuals hold? Why is it so attractive and what are the basic requirements to participate?
Alex : Let me briefly describe our main functionality…
Lending and Borrowing. We start with a much lower collateralization ratio than other projects — we require only 105%. This is closely tied to our risk algorithm, which is able to monitor liquidity very accurately, on the levels of individual users’ portfolios and as an aggregate. Also, we have programmatic interest rates, enabling users much more flexibility than is usually possible, and the ability to co-determine their interest rates.
Bailouts are an additional opportunity for liquidity providers to earn additional income for their participation in the Equilibrium ecosystem. On other platforms, they can only earn by lending assets. On Equilibrium, bailsmen get at least 20% APY on their liquidity.
Liquidity farming. Liquidity farming will reward users in EQ tokens for supplying liquidity to Equilibrium’s liquidity pools.
Requirements to participate — have a Polkadot wallet address.
Wolf : Have you met all your goals in the roadmap till now? And were there any difficulties that you didn’t expect and were not prepared for?
Alex : We are smoothly moving on our roadmap and have already achieved quite important milestones. We have already launched our core functions on testnet. Also, the EQ token TGE took place in November 2020, so EQ tokens are available on mainnet. We have successfully completed the first part of our PLO on Polkadot and reached the hardcap (250,000 DOT).
Wolf : Appreciate That 👏… Please Share Your Private/Public Sales Details?
Alex : At the moment, we are mainly focusing on the PLO on Polkadot and the parachain auctions on Kusama. We are also in talks with multiple partners regarding our further business cooperation. These include liquidity providers, trading companies, wallets, and major exchanges regarding EQ token listings.
As for difficulties, I would say that we are waiting for the exact dates for parachain auctions on Polkadot and Kusama to be prepared for them.
As I mentioned, we have recently completed a DOT/EQ token swap and reached the 250,000 DOT hardcap. Also, we have closed a Series A round of financing, securing $2.5 million from a uniquely multinational collection of tier 1 funds and investors. Currently, we are working on planning the next private round.
At the same time we have announced the whitelist for our upcoming PLO on Kusama. Feel free to register here (https://docs.google.com/forms/d/e/1FAIpQLScIM9QhnPkaoBz2Z6v9-q96BEYji_sMFh-nwsQ_LQ1foPmqnA/viewform).
Whitelist participants will get a 1% bonus in GENS on their contributions to the PLO.
Wolf : Interesting…. Will contact you after AMA On this thanks❤️.
What was your inspiration throughout the journey of Equilibrium? How has the artistic and creative vision of this project changed throughout its development?
Alex : Well, we decided to expand our project to include interoperability across major blockchains and use of their assets. Equilibrium is filling a missing link in the DeFi space, which will unlock huge economic potential. We continue to be true to this vision.
Lets go for community Q&A
Now Group Question & Answer Session Began
Q1. Are you a community based project? How can I work for the success of your project? Do you have a Global Ambassador Program or a Referral Rewards System?
Alex : We do have an Ambassador Program. To take part, you need to do the following steps:
- Join the Ambassadors chat here: https://t.me/eq_ambassadors
- Complete your Gleam coupon here: https://gleam.io/rewards/qmMLR-equilibrium-ambassador-30
3. Submit your coupon here: https://forms.gle/znYZuXdnUB8KxmQn7
Feel free to read the full Ambassador Program description here:
We invite everyone to participate in the program! 💙
By the way, we do various lotteries and giveaways for our ambassadors, so please join the dedicated chat to be up to date: https://t.me/eq_ambassadors
Q2. Ethereum is the primary digital currency of the DeFi world, may I know the effort Equilibrium is making to serve this leading assets? Are there plans of achieving full compatibility across the ETH market?
Alex : We have built our own bridge to Ethereum to ensure that no development delays in the Polkadot roadmap slow us down in connecting to ETH & enabling our products for all of its users, projects and assets ASAP.
In this connection, we will be including many different ERC-20 assets in our Genshiro (https://genshiro.equilibrium.io/en) network on Kusama.
Q3. Could you briefly describe the top achievements and goals that value of defi wants to achieve in 2021 and what we want to do for the future?
Alex : Several trends that are priority in DeFi and we are pursuing include:
1) Increasing interoperability and scalability — Polkadot is right on track with that.
2) Enabling AMM (Automatic Market Makers) and DEX (Decentralized Exchanges) & challenging the roles of their “traditional” counterparts — OTC desks and CEX (centralized exchanges).
I mean that we are bringing the AMM Curve to the Polkadot community as well as our own DEX.
3) There’s increasing demand for products that come from classical finance. We intend to use the Kusama network — which is an experimental space — to go beyond generating synthetic assets as we foresee for Polkadot, and also offer traditional (but digitalized) derivatives like ETFs, gold, etc.
4)The importance of governance tokens is growing because they add utility and enable participation. Their value is growing like crazy.
- Maker (MKR growth since 1/21: 237%)
- Compound (COMP: 172%)
- Aave (AAVE: 256%)
- Yearn.Finance (YFI: 230%)
Equilibrium has two utility tokens. On Polkadot, it’s EQ, on Kusama, it’s Genshiro (https://genshiro.equilibrium.io/en) (GENS). They cover the essential utility functions, and also enable our innovation and USP, since they’re usable for cross-chain multi-asset collateral and bailouts.
Q4. Is there any big partnerships going on? What companies are you partnered with or looking to partner with in future ?
Alex : The major collaboration that I would like to mention is with the AMM (Automatic Market Maker) Curve. This is key because we will be enabling access to and use of it for the entire Polkadot community with a grant we have received for this from the Web3 Foundation. The advantage of Curve is that it enables minimizing slippage when trading stablecoins and other pegged assets, which is key to maximizing traders’ returns.
Q5. Are you anonymous ?Where can I find detailed information about you and your team background??
Alex : Feel free to learn more about our team on the website:
Equilibrium - Cross-chain Money Market
The first Polkadot-based interoperable DeFi money market that combines pooled lending, synthetic asset generation, and…
Q6. Equilibrium provides liquidity in advance to guarantee loans in the system, but where does equilibrium liquidity come from?
Alex : Our liquidity comes from several different sources. First of all, from bailsmen, who are incentivized to provide liquidity by the possibility to earn handsomely (20% APY). They can be both individuals and institutional liquidity providers. In addition, we offer liquidity farming, which allows other users to also contribute by providing multi-asset collateral, and finally from AMM like Uniswap and Curve.
Now the session ends with lots of thanks to our Guest Speaker…
Here are some important links of Equilibrium