Recap of the Equilibrium AMA with Blockchain Space

On Tuesday, June 8th, we had the pleasure to welcome to our Telegram chat:

Alex Melikhov, The Founder and CEO of Equilibrium and Genshiro.

We asked him questions about the development of Equilibrium.

INTRODUCTION

Q~ Please start off by introducing yourself to the Blockchain Space community and your role in the team ?

A~ I’m Alex Melikhov, the Founder and CEO of Equilibrium and Genshiro. I’m an engineer in applied mathematics. Before blockchain I was focusing on fintech, mostly payment systems and gateways. I became completely involved in crypto after co-founding Changelly in 2016. Changelly is still one of the largest instant crypto exchanges on the market.

My current team has been working together since 2017, when we began building on Ethereum. Since then, we have been working on other platforms. In April 2019 we launched the first EOS-based decentralized stablecoin. Today it is the most liquid decentralized stablecoin and the biggest DeFi project on EOS, with over $14 million of total value locked in our smart contracts, and over 1,000 active user positions.

Currently we are working on Polkadot-based Equilibrium and its canary network on Kusama called Genshiro.

Q~ Tell us what Equilibrium is, how it works, and what kind of value it adds to the ever expanding DeFi ecosystem ?

A~ Equilibrium is the first interoperable DeFi conglomerate — it consists of a comprehensive lending platform and a professional-grade cross-chain DEX. Consider it as a place where you can make use of all functionality that DeFi primitives can offer on Ethereum, but in a cross-chain and risk-free manner.

Equilibrium’s main features include pooled lending, a decentralized stablecoin, synthetic asset generation, decentralized margin trading, and perpetual trading. It’s a little like a combination of Compound, MakerDAO, Synthetix, and dY/dX with added extra value on top.

In my opinion there are several obvious industry hurdles that we are also addressing at Equilibrium. They include:

  1. Market fragmentation. Before us, users needed to use several apps on different protocols.
  2. Lack of interoperability. We design Equilibrium to enable asset transfers across chains & and use of different assets in lending combining them in collateral baskets.
  3. Inefficient bad debt liquidations. We are introducing the bailout mechanism that will prevent situations like with MakerDAO in March 2020 by ensuring bailout liquidity in advance
  4. Liquidity issues. Equilibrium maximizes cross-chain, non-custodial liquidity by using multiple assets from different protocols.

Q~ Equilibrium announced its Kusama-based project, Genshiro, can you tell us what it’s all about in detail ?

A~ Our Kusama-based canary network Genshiro (https://genshiro.equilibrium.io/en) is a bolder version of the products that we will later offer on Polkadot. It represents a cross-chain DeFi conglomerate complete with a lending platform and cross-chain DEX. There will be more experimental elements, like support for a wider range of synthetic assets that can represent derivatives from the world of traditional finance, like gold and ETFs. We will also offer support for a wide range of ERC-20 based tokens.

You can learn more about it here:

Q~ Can you share with us detailed information on the $EQ/$GENS tokenomics and it’s usecases ?

A~ Sure. Since we have 2 projects (on Polkadot and Kusama), there are 2 utility tokens: EQ and GENS.

EQ relates to our Polkadot-based product line. EQ is the core asset of our interoperable money market, widely used throughout our system and the applications that run on top of it. The initial supply is 120 million EQ tokens, fully compatible across every blockchain bridged with Polkadot.

EQ token use cases broadly fall into four categories: paying fees, accessing system governance, liquidity farming, and bailouts/system liquidity. At the moment, participating in the PLO phase 2 on Polkadot is the only way to get EQ tokens. But we are in talks with exchanges.

Recently we announced our Kusama-based utility token GENS. Its use cases include governance, voting for validators, transaction fees, interest rates, and (when GENS will become a more established asset) liquidity for bailouts & collateral.

There are several ways to get GENS tokens:

  • Participate in our IDO on DODOex on June 16. More details here:
  • The second option is to participate in the PLO and get interest from staking GENS during the parachain leasing period. Our Kusama PLO strategy:
  • Each whitelist participant will receive a referral link that’s tied to your email address. You will get a 1% referral bonus in GENS for every person who participates in the PLO on Kusama using that link. Feel free to join the whitelist here:
  • You can also join the Genshiro Ambassador Program for your shot at sharing the 300,000 GENS prize pool. Read the rules here:

Xiaolin : What about the initial supply of GENS?

Alex : It’s 1.2 billion.

Q~ Can you give us an update on what the team at Equilibrium has accomplished till date and your future plans for Equilibrium ?

A~ We have already achieved quite important milestones. We have 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).

As I mentioned before, recently, we announced our project on Kusama, which is called Genshiro

It’s an interoperable DeFi conglomerate on Kusama that can do all things that existing DeFi primitives do, but with less risk and in a cross-chain manner.

At the moment, we are mainly focusing on the PLO on Polkadot and the parachain auctions on Kusama which will start soon. We are going to launch GENS IDO on DODOex on June 16. 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/GENS token listings.

QUESTIONS FROM TELEGRAM

Q~ What is the most significant use case of EQ tokens and how can I get the most out of this project?

A~ While we are a DeFi one-stop shop and have all the key uses cases, we are also a lending platform and a DEX. That means that you have great opportunities to earn passive income. You can take loans and leverage up to 100x to do margin trading on our DEX.

You can also earn well as a bailsman. I’ll say more about that in a moment in response to some other questions here.

Q~ One feature that caught my attention is the “Bail out” feature, please can you shed more light on this feature?

A~ The bailsmen role is unique to us. This is a mechanism that replaces the conventional forced auctions which lending projects usually use to liquidate bad debt. We have replaced these because we know that they can be problematic, especially in stressed markets - we all witnessed this on Black Thursday last year.

Bailsmen work by taking over the obligations of users who default on their loans. In doing so, bailsmen can earn up to 40% APY. I think you’ll agree that those are handsome earnings!

The bailsmen are coordinated by means of our programmatic interest rate & internal risk assessment algorithm. That’s the next thing I’m going to respond to in another one of your questions… :)

Q~ Can you tell us about your PROGRAMMATIC INTEREST RATE and its benefits for the platform users ?

A~ The Programmatic Interest Rate (PIR) is an essential part of our risk assessment.

1) It monitors the level of liquidity both as a function of individual users’ portfolios & on an overall, aggregate level, in real time. If liquidity falls below a certain point, the bailsmen are notified & incentivized to pump more liquidity into the system - and can earn handsomely by doing so.

2) Second, the PIR is also great for borrowers, because it gives them a lot of flexibility & lets them co-determine their interest rates by choosing their collateralization rate. We DO NOT have a FIXED RATE. Our collateralization rates are flexible & start very low - at 105% - we can afford to do that because our risk algorithm works very precisely.

Q~ You mention that Genshiro will be releasing an IDO on DODOex soon. Could you tell us how we can participate in this event? Will Genshiro have a giveaway for users who want to enter before the IDO takes place? On what date will it be held?

A~ Sure, that event is coming up very soon, starting on June 16th. You can read the details on the IDO here:

Please note that to participate, you should sign up to our white list (details in the article) because there will be a lottery to determine who can participate.

Q~ Hello sir… Does your project support staking program? if yes. how is your stake system work, what is the requirement for user if they want to stake in your platform?

A~ In fact we do have a staking program - Liquidity Farming - which will also offer you great opportunities to earn passive income. You probably know that such mechanism are behind the DeFi growth boom that we have been having this past year (the market went from 1B - close to 90 B USD). In the beginning, only bailsmen will be permitted to participate in the staking - as I said, they can earn up to 40% APY.

CONCLUSION

Thank you all for hosting this great AMA. It was a please for me. Blockchain Spacers, stay tuned for our updates:

Equilibrium Website: https://equilibrium.io

Genshiro Website: https://genshiro.equilibrium.io

Twitter Equilibrium: https://twitter.com/EquilibriumDeFi

Twitter Genshiro: https://twitter.com/GenshiroDeFi

Telegram: https://t.me/equilibrium_eosdt_official

Medium: https://medium.com/equilibrium-eosdt

Also join the Genshiro Ambassador Program for your shot at sharing the 300,000 GENS prize pool here:

https://t.me/gens_ambassadors

It’s really nice having the Equilibrium project in here!!!

You can check out their Website for more details. You can also follow them on Telegram and Twitter to keep up to date with all things relating to Equilibrium.

Join us now! Enjoy quality articles, daily curated news, insightful infographics, and enter a vibrant, fun, and knowledgeable community!

If you want to email us: Blockchainspace001@gmail.com

Blockchain space gives room for discourse which regards crypto-related topics, projects and cryptocurrencies. https://linktr.ee/blockchain_space