Equilibrium introduces a decreased liquidation penalty, decreased collateralization requirements, a new referral program, and more
The Equilibrium framework’s EOSDT stablecoin is evolving in line with user wishes. The critical collateralization requirement has been reduced from 170% to 130%, and the liquidation penalty has shrunk from 20% to 15%.
These changes are possible thanks to the introduction of an agile mechanism for multiple margin calls and the implementation of an additional oracle service for more accurate price feeds. These updates directly enhance the most important features of the EOSDT stablecoin: maintaining USD parity and responding confidently to uncertain market events. These are almost impossible to achieve on Ethereum due to its high transaction costs.
Beyond these changes, the framework is also introducing a new partner program that will pay people 50% of the NUT fees associated with a user generating EOSDT within someone else’s app or interface. Here’s what you need to know.
Introducing multiple margin calls
We’ve built a new internal method that fires every time the oracle service updates prices on our smart contract. The system automatically liquidates undercollateralized positions with help from deferred transactions. This ends up activating other deferred margin calls, producing a chain reaction that ensures quick action in case multiple positions need to be liquidated simultaneously.
Delphi Oracle service deployment
We’ve become more redundant in a good way — we added another oracle service to our price feed. Where we used to only get digital asset price data from Provable (formerly known as Oraclize), we’re now getting data from Delphi Oracle as well. The final reference price that the framework uses is the median of the two most recent values.
With every action the user takes, the system calls its reinit() function, which has the positions contract check for active queries that require collateral and utility token rates. The rates contract calls for a quotes update at the same time, checking the age of every active query if necessary. If the query is more than a minute old, it becomes obsolete and a new query is made.
Referral program launch
Last but not least, the Equilibrium framework will launch a referral program to support EOSDT generation and accelerate general adoption of its products. Those who partner with us by providing some sort of front end for users to generate EOSDT will receive 50% of the NUT fees. They just need to register EOS addresses on our system and receive a referral ID in return. The system will automatically send rewards to those registered addresses.
As always, we’ll keep our partners and community closely updated on the referral program launch date (and other pending details), so please stay tuned.