Introducing Equilibrium’s Stability Fund
The crypto community needs a reliable insurance mechanism to ensure users of DeFi projects will get their funds back in case of a black swan event.
We are bankrolling the crypto industry’s first Stability Fund using our own 6.5 million EOS, worth approximately $17.5 million USD. These resources provide our smart contracts with a figurative insurance mechanism for guarding against fluctuations in the price of the digital assets that back the EOSDT stablecoin. In conjunction with our recent technical amendments, it facilitates safe reductions to EOSDT’s collateralization requirements, from 170% down to 130%. We are working on other system updates and an on-chain liquidation system that will allow for further reducing that requirement to 120%.
The fund’s financial resources are deployed when the total value of EOS collateral falls below a 100% collateralization threshold, no longer adequately backing the associated EOSDT positions. The fund’s smart contract algorithm will automatically restore the entire EOSDT collateralization level to 100% with no penalty for undercollateralized positions. EOS 42, the noted block producer and pioneer of EOS mainnet security, has already audited the contract for security.
The Fund’s smart contracts can be inspected at the following blockchain addresses:
By providing easy liquidity to undercollateralized EOSDT positions, our Stability Fund works to create more opportunities to leverage digital assets and establish EOS as reliable collateral.