Equilibrium recently announced the issuance of EOSDT, a token anchored to the US dollar that is backed by EOS, as well as a series of services on its platform through intelligent contracts that will allow EOSDT holders to offer loans through the collation model.
The vast majority of cryptocurrency-based collateral loan companies offer products or mechanisms that face the volatility of prices in the crypto-market.
The structure of this business entails a logistic process in which the user sends a certain amount of funds to a portfolio that blocks the amount of the guarantee. It is at this moment when the smart contract plays a major role in the operation, since it allows the user to be alerted about the loan's position in the event of a possible trade settlement. If the loan is not returned, the contract is canceled and the guarantee is collected.
The difference with the new form of tokenization that Equilibrium proposes, is based on a set of intelligent contracts elaborated on the EOISO platform that, although the guarantees are made initially with the EOS for this launch, will allow the project to support other cryptoactives. Any individual with a cryptocurrency compatible with the specifications of the company can take advantage of the platform "Self-service gateway" or self-service gateway to make their loans
The gateway works through an intuitive interface that facilitates the loan process, notes Equilibrium in his blog. Accessing it, people have a range of options to deposit, withdraw and even move their positions in the cryptocurrencies that they have used as collateral, being able to generate EOSDT up to a limit of 170% of their initial capital, simplifying the work of coverage for cases of high volatility in the market. That is, traders can seek stability in this type of currency when prices go through turbulent movements, using their cryptographic assets as guarantors, without the need to liquidate them.
EOSDT will open spaces, according to what Equilibrium exposes, so that users have a greater number of options in their day to day, such as the payment of goods and services to businesses that receive the cryptocurrency and even provide fiduciary quotes for currency pairs in decentralized exchanges.
EOS, the intelligent contract and computing platform designed to house a wide variety of decentralized applications (dapps) and decentralized autonomous corporations (DAO) is the main beneficiary of this initiative, since it ventures into a niche dominated by its competitor direct Ethereum, through MakerDAO, an option that also focuses on loans using as a guarantee for cryptoactives.
In recent months, low commissions, scalability and speed in transactions have made EOS an attractive project for dapps developers, making them migrate from platforms such as Ethereum or Neo to more economical and sustainable models.
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