A closer look at EOS DeFi protocol – Equilibrium
Equilibrium, which operates EOSDT – the largest stablecoin on the EOS blockchain – is offering early access to its new cross-chain governance EQ token with 33% bonus via the voluntary swap of its existing EOS-based NUT (Native Utility Token).
As part of the Parity’s Substrate Builders Program, Equilibrium has been working closely with the Polkadot team, and this move will bring additional value to the blockchain as Equilibrium extends to Polkadot its existing EOS features such as staking pool and decentralized stablecoin.
It also expands its product line with pooled lending, synthetic assets, and decentralized leveraged trading for cryptocurrencies such as BTC, ETH and BNB.
The NUT/EQ token swap is designed to incentivize existing users to try out the new Polkadot platform. It will start on 31 August and run until 29 September.
To facilitate this, Equilibrium has created the EQ token as its core multichain asset, which will enable the future decentralized governance of Equilibrium.
EQ will also be used to pay transaction and product fees on Polkadot, while EQ holders will earn rewards thanks to the planned token inflation of 2.5% per year. In addition, liquidity providers can earn yield in EQ tokens by securing loans in the system as they lock assets including EQ tokens in Equilibrium’s liquidity pool.
Equilibrium is allocating 25% of EQ’s total supply of 120 million tokens to facilitate this NUT swap.
During the first five days of the swap, NUT can be exchanged for EQ at a rate of 1 NUT to 100 EQ. This rate will gradually decrease – as controlled by an S-curve – finally reaching an end state of 1 NUT to 75 EQ after 25 days.
After the 29 September end date, both NUT (EOS) and EQ (Polkadot) tokens will co-exist on their respective blockchains, allowing users of each to take advantage of the platform’s core features and bringing cross-chain functionality to the DeFi sector.
In future, Equilibrium plans to launch an Initial Parachain Offering for EQ tokens in Q1 2021. During this auction, holders of Polkadot’s DOT tokens will be offered the opportunity to lock their tokens for two years, gaining EQ tokens that will be distributed as rewards.
The first decentralized cross-chain money market that combines pooled lending with synthetic asset generation and trading. Equilibrium is set to open up the vast potential of the DeFi market and become its #1 app by offering exceptional services to the users of previously isolated major crypto assets. Visit: equilibrium.io
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