Dear Equilibrians, if you have not been following us lately, we’ve got a massive piece of news for you: we are launching our Closed Beta phase where you can be one of Equilibrium’s first users and play with all our key functionalities. Plus there’s a $40,000 reward in EQ lined up for participants.
In preparation for the launch in September, we will be taking you through a series of use cases to help you grow your virtual portfolio and be prepared for when Equilibrium goes fully live.
So if you have not applied yet, hurry up to register here.
This is the first in the series, and we’ll be talking about how to be a lender on Equilibrium’s money market and earn interest from your deposit.
How to Lend and Earn Interest on Equilibrium
Every participant will be given a portfolio worth $25,000 worth of virtual assets.
The crypto-assets supported in this Closed Beta are BTC, ETH, DOT, USDT, USDC, BNB, ACA, GLMR, ASTR, INTR tokens.
Lenders play a very important role in the system as they provide liquidity. To become a lender on Equilibrium’s money market, simply stake your assets in the Lending Pool. This way, borrowers will be able to access your funds.
When borrowers borrow from your staked assets, you will earn variable interest rates in EQ tokens. The more borrowers borrow, the more you earn.
Keep in mind that on Equilibrium, there is no fixed interest rate — the interest fee borrowers pay is determined by a risk and interest rate model. That is, it depends on the amount of leverage they use, the kind of assets they borrow, and the scale factor of the portfolio.
How Much Will this Help with The Portfolio Growth?
Although the interest rate at Equilibrium is not fixed, you can expect to earn anaverage interest rate of 10% per annum on your loans. So for the 2 weeks, you can earn an interest rate of 0.42%.
Napkin math: To put it into context, if you stake all your $25,000 worth of assets, you’ll earn an interest of around $104 in 2 weeks.
Conclusion
This is a golden opportunity to explore Equilibrium’s core functionalities before we go live. Remember, this phase is restricted to only 500 participants and you do not have forever as registration ends on 3rd September, 2022. So hurry!
About Equilibrium
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.
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