We held our second community call on January 21!
Quite like our inaugural call one month ago, this served as a time and space for our community members to get the latest Equilibrium updates directly from key members of the team, as well as get answers to any questions they want to ask. Attendance has more than doubled in comparison with the previous call. Over 120 people attended, asking more than 60 questions between the online form and the call’s open question time.
This call featured Equilibrium’s Director of Customer Success Lesley Czuma, CEO Alex Melikhov, and Senior Project Manager Peter Sergeev. Together they covered Equilibrium’s latest technical developments, filled everyone in on the upcoming parachain lease offering (PLO), and talked about the roadmap ahead.
If you weren’t able to join us live, you can watch a replay of the call right here or read on for a summary.
Our roadmap for Q1 2021
This image above gives you a clear picture of where we are now and where we’re heading in the future. The biggest item on our horizon is the parachain lease offering (PLO), a risk-free fundraising mechanism taking place in two parts — we’ll reveal further details below. Dates for the PLO are preliminary and largely dependent on the arrangement with the custodian.
We will make an effort to integrate with Rococo, Polkadot’s Parachain testnet specifically designed for parachains and their related technologies, by the end of January. We expect to see Equilibrium on the Rococo Relaychain at the end of February.
Around the same time, Quantstamp will finish its security audit of our services, and our EQ token will see some new exchange listings. Before the Q1 2021 is over, we’ll launch the alpha version of our decentralized exchange.
What you need to know about our Parachain Lease Offering (PLO)
We are conducting a fundraiser in two parts as our onramp into 2021. We’ll announce exact dates as soon as we have them, but your best first step is to register for our PLO whitelist here to get a 1% bonus in EQ on your contributions to the PLO. We will raise DOT as a means to secure slots on our parachain, and we’ll offer a couple of ways for people to receive Equilibrium’s core asset, the EQ token, in exchange.
The first of these is a DOT-for-EQ token swap. Users parting with more than 10,000 DOT will get extra EQ as a bonus. Every participant gets the right to swap EQ back for DOT for free at the initial swap rate after the end of the parachain lease. This right will also be executed by the custodian. Participants who exercise their right to the reverse swap will keep their initial bonuses in EQ.
The crowdloan follows the token swap. During this second phase, users can stake their DOT to the crowdloan module and earn EQ tokens as a staking reward for doing so. The reward will cover an opportunity cost on the Polkadot network plus premium up to 5% APR. At the end of the parachain lease, contributors will get their DOT back automatically. This refund is executed by the Polkadot’s decentralized and permissionless crowdloan module.
With these two fundraising mechanics working together, we aim to raise at least 1 million DOT.
The ETH bridge is coming
The next major functionality we expect to unveil is an Ethereum bridge that will work to complete transactions on the ETH blockchain. Ethereum is the primary digital currency of the DeFi world, and Equilibrium has already come far without yet serving this leading asset. Once our ETH bridge is up and running in the mainnet, we will have access to a main center of gravity in DeFi.
With that done, Equilibrium will achieve full compatibility across the ETH market, not to mention the smaller markets we’ve already been serving successfully.
Once our ETH bridge is deployed, Equilibrium will become a DeFi force to be reckoned with. You can try it out now on the testnet.
Liquidity farming: earn EQ tokens by providing liquidity to Equilibrim’s liquidity pools
We are working on a liquidity farming mechanic that will pay passive income to people who put digital assets into our platform. The idea is that users supply some of the various currencies that make our suite of financial services work, and they earn a bonus for doing so. 12 million EQ tokens are allocated for liquidity farming rewards, which is 10% of the total supply.
Our goals with liquidity farming are to incentivize users to be active on the platform, to facilitate balanced distribution of liquidity across internal pools (the lending pool, the collateral pool, the bailout pool), and to increase the liquidity of Equilbrium’s native assets in external liquidity pools like Uniswap, Curve, and others.
The availability of cryptocurrency on a DeFi platform largely depends on that platform having bridging solutions that talk to other blockchains, so we’ll start tapping into the Ethereum yield farming pool when our ETH bridge is established. Those users who want to stake their ETH with our platform can earn passive income for their help promoting our services.
We will announce the launch of our liquidity farming mechanic soon, so stay tuned!
Join us for the next call on February 26!