DeFi has amazing potential to revolutionise the world. Countless DeFi projects have come to the fore, harnessing the power of DeFi, to offer innovative solutions to real-life challenges that users face in the space. Despite extensive market research and numerous innovations, this rapidly expanding ecosystem is still far from unlocking the true potential of this next-gen financial technology. The biggest challenges or obstacles to cause this delay are many, to name a few:
- Excessive over-collateralization in the most lending protocols
- Fragmentation of the DeFi space due to interoperability issues
- System risks of liquidations via auctions in distressed markets
With extensive research, years of hard work, and a determined team, Equilibrium, a one-stop cross-chain DeFi platform, brings unique solutions for all the obstacles stated above and more. Equilibrium is a Substrate-based engine on the Polkadot network. It allows users to earn, borrow, and trade with high leverage, at maximum efficiency. All cross-chain and in the single place.
The underpinned technology of Polkadot enables Equilibrium to deliver cross-chain interoperability and more technical performance. In short, Equilibrium makes DeFi seamless and convenient by eliminating the biggest DeFi challenges, offering smarter solutions, and mitigating risks.
To help our community learn more about Equilibrium, we are sharing a list of information shared directly by our CEO, Alex Melikhov.
Equilibrium Q&A Session
What led you to start and build Equilibrium?
To better serve current DeFi community needs and innovate the existing market.
What is the need for Equilibrium in the market? What problems are you trying to solve with it, and how?
Equilibrium will become the first DeFi one-stop platform by offering exceptional services to the holders of major crypto assets like BTC, ETH, DOT, KSM, and beyond. All this will become possible thanks to Polkadotʼs cross-chain bridges and the Substrate framework for creating decentralised systems. Building such a system on the Substrate will in turn help Polkadot differentiate its technology from layer-1 blockchains 3.0 like Solana, Avalanche, Cosmos, and others.
The opportunity to reshape the DeFi space here is immense. The times of fragmentation of users across various DeFi protocols and different blockchains are coming to an end. Equilibrium will unite them all and has developed a solution that combines the capabilities of the top DeFi protocols by locked value (DyDx, AAVE, Compound, and Curve).
Let’s talk about your product. What makes it unique and valuable for the community?
It’s the first combined money market and orderbook DEX built on Polkadot. The unique financial engineering enables borrowing and trading with high leverage (up to 20x) not typically seen with other classical DeFi protocols. Another unique feature is that we combine all sustained DeFi use-cases in one platform.
Thought out risk model and overall system architecture mitigates risks for borrowers, lenders, and insurers and ensures the system to stay solvent under different market circumstances. The first fully on-chain orderbook-based DEX is also valuable on its own as the first of a kind in the Polkadot ecosystem.
Who benefits the most from these products?
Both retail crypto users who typically use DeFi products and institutional investors will benefit the most. We offer a set of handy instruments for retail and an opportunity for institutions to participate in insurance business, earn on liquidity provision, and market making.
How can we help make Equilibrium more popular and in-demand among all market participants?
We need strong marketing and business development for Equilibrium to become successful. We need to educate the community on our technology and engage in closer communications with our users to learn their demands better and align our product line with those demands.
What gives Equilibrium a competitive advantage in the industry?
Equilibrium’s competitive advantage is the people who work on the project. We have an exceptionally strong technical team, capable of delivering sophisticated, secure, and innovative products.
Where do you see the company in the next five years?
In 5 years we will become a multi-chain DeFi unicorn.
How soon do you think the world will adopt a decentralised financial system? What prospects does the dollar have? Can we see its rapid depreciation?
5–10 years more and adoption will truly become worldwide! There will be numerous blockchains interconnected with each other and each will have a number of innovative financial instruments. New stable units of account will emerge, not necessarily pegged to USD, there will be means to exchange and accept those units of account. Communities around the world will enjoy the benefits of security, privacy, and decentralisation offered by blockchain technology.
Usually, everyone talks about the benefits of the project. It’s cool, but how about we discuss the opposite? Does the project, in your opinion, have any drawbacks or weak spots at the moment? Maybe some increased risks in any areas? If so, how do you plan to reduce it?
The project has grown to become overcomplicated, this might be an issue when it has to be run and managed by the community. Different people with specific hard skills will need to work on it and make sure it operates as intended.
What do you think about the future government regulations for crypto? How can they affect DEX, and will you deal with them?
The regulation aims to control the flow of your funds under the premise of protecting you from terrorists, personal data fraud, and illegal internet trade. It will crackdown on crypto eventually and everyone has to be prepared to deal with the “new normal”, so having a team of financial lawyers might be a good thing. On a separate note, we are setting shops in a few regulatory sandboxes now and will announce our further steps then.
Can you talk about your final goal and timeline for achieving it?
Becoming a DeFi unicorn with > 1 BLN TVL locked in the platform. Becoming a primary money market and DEX in the Polkadot ecosystem.
Equilibrium is a one-stop DeFi platform on Polkadot that allows for high leverage in trading and borrowing digital assets. It combines a full-fledged money market with an orderbook-based DEX. EQ is the native utility token that is used for communal governance of Equilibrium. xDOT is a liquid and tradeable wrapped DOT that unlocks liquidity of DOT locked in parachain auctions and delivers multiple crowdloan bonuses on Polkadot.