On Friday (May 1), EOS-powered decentralized finance (DeFi) startup Equilibrium Lab announced that its EOSDT product, which is a crypto-backed dollar-pegged stablecoin, now supports both Bitcoin (BTC) and EOS as collateral.
Equilibrium is an EOS-based platform for creating crypto-backed stablecoins and DeFi applications. Its "inbuilt tools enable maintaining price stability" for Equilibrium-based stablecoins.
Here are four features that make the Equilibrium platform a very interesting all-in-one interoperable DeFi hub:
- One Stop Shop: Equilibrium is comprised of DeFi previously only accessible via distinct protocols.
- Safe Custody: The framework has no access to assets in pools (they are settled directly in the smart contracts);
- Trustless Interoperability: Equilibrium uses Polkadot bridge to allow cross-chain token transfers and multi-asset collateralization.
- Easy to Use: A simple web-based interface makes it easy for users to perform complex DeFi operations.
The first stablecoin of the Equilibrium DeFi hub is EOSDT.
Equilibrium says that EOSDT is safe (since it backed by a multi-million dollar insurance policy known as the "Equilibrium Stability Fund"), stable (smart contracts are used to maintain a 1:1 peg with the U.S. dollar), and transparent (since you can't put EOSDT into circulation without using crypto as collateral).
In a press release shared with CryptoGlobe, Equilibrium made two interesting announcements:
- The cap on EOSDT supply has been increased from 70 million to 170 million.
- Via an integration with pTokens technology, which "makes every cryptocurrency compatible with every blockchain", EOSDT, which initially could only be collateralized with EOS, can now also be collateralized with Bitcoin, thereby making Equilibrium "the first ever EOS-based DeFi project to support Bitcoin."
Equilibrium says that the users of its platform "generate EOSDT because it offers them the most effective way to raise price-stable liquidity at 1% APR against collateral of their volatile crypto assets." EOSDT also enables users to earn interest on staked assets (approximately 2.45% interest on locked EOS).
Equilibrium's support for Bitcoin "opens the door to new liquidity for the EOS ecosystem while driving interest in BTC-based DeFi." And it is this support for Bitcoin that has allowed Equilibrium to "safely raise EOSDT’s circulation cap from 70 million to 170 million."
Furthermore, Equilibrium is currently working on "a true cross-chain interoperable system that will support ETH, TON, Tezos, and more."
Thomas Bertani, the founder of Provable Things, the team behind pTokens technology, has this to say:
"As a stablecoin, EOSDT already challenges traditional concepts of value and how we can translate it in our digital world.
"With Bitcoin now providing additional collateral for EOSDT, we unite the world’s traditional reserve currency, the US dollar, with the most used and popularised digital asset to date.
"This marriage between fiat and digital currencies creates layers of liquidity and a unique collateral base that traditional currencies simply cannot provide.
"We’re excited to team up with Equilibrium as they redefine 'stable' value for the digital asset class.”
As for Alex Melikhov, the founder and CEO of Equilibrium, he stated:
“BTC is the most major digital asset that companies in this space can support.
"Liquidity is one of the first challenges that a DeFi framework must overcome, so Bitcoin compatibility is a major achievement for securing Equilibrium’s future.
"This integration makes it possible for billions of dollars in fresh liquidity to make its way to EOS-based decentralized finance.”
Featured Image Courtesy of Equilibrium Lab