Equilibrium: The Next Step To A Stable Blockchain Is Here

May 01, 2019
Equilibrium: The Next Step To A Stable Blockchain Is Here

The Equilibrium cryptocurrency framework officially launched at EOS World Expo, one of the most impactful EOS events in the United States, on April 13, 2019. Equilibrium CEO Alex Melikhov presented the project and the world’s first decentralized EOS-based stablecoin, EOSDT, to conference attendees. Here’s the text of that speech.

Stablecoins can offer many benefits and provide a secure place to store funds that are backed by fiat currencies, assets, or commodities. But most of these stablecoins (like USDT, USDC, GUSD or Carbon) circulate in the environment with a high level of centralization that creates inherent counterparty risks. In contrast, decentralized asset-backed stablecoins allow for complete transparency and crypto-collateralized stability. Some of these decentralized stablecoin models have already proved their sustainability (like Dai).

Now it’s time to introduce Equilibrium, the framework for generating asset-backed EOSDT stablecoins.

Equilibrium is a scalable framework on the top of EOSIO infrastructure that aims to build the foundation for asset-backed stablecoins across multiple blockchain ecosystems, using atomic swaps for both stablecoins and their underlying assets. For the start its software service lets the community generate the first decentralized EOSDT stablecoin on the EOS blockchain against the collateral of liquid digital assets, including EOS cryptocurrency..

To future-proof Equilibrium, we're constantly monitoring the blockchain universe for new types of blockchains (so-called gen 3.0 is about to roll out with projects like TON, Polkadot, HashGraph, and Dfinity) where they promise to offer interoperability out of the box.

What differentiates the Equilibrium framework from other projects is that it’s one of the first decentralized finance applications to facilitate true collateral superfluidity. It lets the community vote for a list of block producers who might get a staked portion of the framework’s collateral, thus leveraging any DPoS architecture. When EOS REX gets rolled out, a user may also stake EOS and lend out resources, earning interest on this activity, which will partially help to combat EOS’s built-in 5% annual inflation.

Our partnership with Oraclize (now Provable™) has led to a real-time price feed implementation, thanks to the near-zero cost of EOS transactions between Equilibrium smart contracts and data sources. The Equilibrium framework currently allows only collateralizing EOS, but the team is already working on an update to support a basket of collateral within one user position. We’ll have good news here soon.

The theory behind Equilibrium is that all EOSDT stablecoins are placed into circulation by users via collateralization of their liquid digital assets. The main purpose of the Equilibrium framework is to maintain a specified collateralization level and balance the supply and demand of EOSDT through indirect market incentives. If the collateralization of a particular position drops below the critical level, it will be liquidated with a liquidation penalty. This incentivizes users to autonomously maintain the collateralization of their positions above the critical level. On the other hand, it also guarantees that every single EOSDT stablecoin is backed by sufficient, robust collateral at any given moment.

The team behind the project has impressive background in the fintech and crypto industry, including former Goldman Sachs executive, Huobi Global counsel, financial and engineering experts who are passionate about developing better, more complete large-scale crypto products. Check out the full technical specification on the entire on-chain infrastructure and a comprehensive web interface for the Equilibrium framework here.

You can watch the video of this speech here: https://bit.ly/2DmUvpG