Equilibrium is proud to announce our newly launched support for DAI, the major stablecoin by MakerDAO. Once Equilibrium enters production, DAI will play an important role in the further development of our platform. There are several reasons behind this.
Firstly, DAI is popular among crypto power users who are already familiar with sophisticated DeFi instruments, so DAI support is useful for attracting a high-level crypto community. Just look at other lending platforms where DAI sees the highest relative demand among other stablecoins. For example, its borrow APY is currently 4.16% compared to USDT (3.53%) and USDC (3.47%) at Compound.
Secondly, adding DAI will also bring more liquidity to Equilibrium's platform. Many DAI markets are of an impressive size: Aave, the major pooled lending platform on Ethereum, hit $1.13 billion, making the stablecoin one of the most usable assets. At the same time, we have made arrangements with StableNode, the company founded by Gustav Arentoft, to act as liquidity provider for our initial DAI holdings.
This support serves our platform and our users because DAI performs very well on other lending platforms, such as Compound and AAVE. But compared to them, Equilibrium can offer advanced options for borrowers given the specifics of its architecture. It applies a minimum collateralization requirement (as low as 105%) allowing for higher leverage with the same amount of initial collateral. Borrowers can also decrease interest on their DAI loans by setting higher collateralization levels or providing less volatile collateral.
When we launch our project on the mainnet users will be able to use DAI in our lending platform, farm liquidity with it, become a bailsman and earn passive income with it, as well as trade on the substrate version of the Curve AMM.
You can see DAI in our interface on the testnet today. Try out our borrowing and bailout functionalities, and don’t forget to switch to the Rinkeby testnet in your Metamask while testing!
How to get started testing DAI?
You can get DAI via Compound. Just visit Compound using Metamask on the Rinkeby testnet: https://app.compound.finance/asset/
- Go to "Supply" and click on the token you want.
- in the window that appears, go to "Withdraw."
- Click on "FAUCET" and you will get 100 tokens.
If you have more questions about how to obtain Rinkeby DAI, please check out this page.