Cross-chain DeFi lending protocol Equilibrium (EQ) is ready to convey its USD-pegged stablecoin to Moonbeam, a Polkadot (DOT) venture constructing
Cross-chain DeFi lending protocol Equilibrium (EQ) is ready to convey its USD-pegged stablecoin to Moonbeam, a Polkadot (DOT) venture constructing an Ethereum-like blockchain.
DeFi tasks constructing on Moonbeam will be capable to use Equilibrium’s stablecoin as if it have been native to the blockchain. This contains decentralized exchanges, single-purpose lending protocols and different DeFi constructing blocks.
Moonbeam will be described because the “Ethereum on Polkadot” venture. It makes use of the identical good contract setting seen in Ethereum, that includes an Ethereum Digital Machine and utilizing the identical conference for accounts and wallets. As a consequence, Moonbeam helps Solidity good contracts and permits builders and customers to port their tasks and wallets with minimal modifications.
On the identical time, Moonbeam is a parachain, Polkadot’s equal of a shard. This permits different parachains to hook up with Moonbeam with minimal effort, due to cross-parachain communication enabled by Polkadot’s relay chain — primarily its equal of the Ethereum 2.zero beacon chain.
This connection can be utilized by Equilibrium to convey its token to the Ethereum-enabled setting. The expectation is that Ethereum-based DeFi protocols will convey their tasks to Moonbeam, thus instantly connecting Equilibrium to the broader DeFi ecosystem. One such potential integration is SushiSwap, which is exploring the potential of making a sister protocol on Moonbeam. Alex Melikhov, CEO of Equilibrium, commented to Cointelegraph concerning the integration:
“We really feel that there’s vital worth in showcasing collaboration between specialised parachains the place the sum will be better than the elements for each events.”
Equilibrium is a cross-chain cash market protocol, permitting deposits of collateral to create a decentralized stablecoin — just like MakerDAO. Whereas initially constructing on EOS, Equilibrium moved the core of its protocol to Polkadot in the summertime of 2020. Along with making use of Polkadot’s interoperability options, Equilibrium locations heavy emphasis on its mechanism of liquidation bailsmen. Not like different comparable protocols, liquidations are managed by a everlasting class of liquidity suppliers who obtain a portion of the platform’s income. This gives a baseline of rewards no matter the quantity of debt liquidated, which turns into merely an extra supply of revenue.
The launch will happen after Polkadot’s anticipated parachain auctions, anticipated to happen in early 2021. Melikhov mentioned that their plans are reliant on each Moonbeam and Equilibrium receiving parachain slots, which isn’t a certainty. Nonetheless, he believes there’s sufficient room for all main tasks presently constructing on Polkadot to obtain a parachain.