In one of its press releases, Equilibrium, a cross-chain Decentralized Finance (DeFi) money market reliant on the Polkadot blockchain has apparently raised $5.5 million through an unconventional token swap fundraising method. The Press Release has revealed that the amount so raised saw the collective inclusion of several Venture capital funds that have invested in Polkadot. Some of these names include BKOEX Capital, PNYX Ventures.
The fundraising was done through an unconventional token swap. A token swap, also known as the token voyage represents the alteration of digital tokens from one blockchain onto another blockchain. The ensues fundamentally whenever projects make use of one blockchain to foster funds after which they could transport their tokens onto their private exclusive blockchain once the project’s mainnet has been ejected.
The platform’s token swap comprises users that exchange Native Utility Tokens (NUT) from the platform’s EOS-based product from EQ utility tokens on Equilibrium’s new Polkadot-based platform. In the press release, it has also stated that it is aware that robust user participation is much more important than a token sale. The EQ token was launched with the description that it is a cross-chain compatible token used as a platform currency and voting mechanism in its decentralized governance. The token has accentuated its utility to pay for product fees, loan collateral, bailout liquidity to secure loans, and payment of transaction fees on its foundation.
The holders of the EQ token are eligible to select Substrate validators and also give their opinion on matters relating to system change. Liquidity providers can easily earn yields on securing loans in the system by locking EQ in Equilibrium’s liquidity pool. EQ holders also get rewards on their tokens staked to Equilibrium’s governance
In one of his statements, Ji Jingyan who is the CEO and founder of BKEX exchange expressed his intention to list EQ token on its exchange.
“Who else offers non-custodial pooled lending across blockchains and will connect major assets and protocols to empower global digital asset trading? Equilibrium is filling a missing link with its services.”
Equilibrium is orienting its efforts to make Ethereum and other important blockchains in the ecosystem harmonious with each other with the help of other use cases of Decentralized Finance. It supposedly blends the cross-chain pooled lending for the most important crypto assets as well as synthetic assets including cross-chain trading.
The framework presents an intuitive technical environment to generate decentralized stablecoins and other DeFi projects. Such ventures allow for maximum community participation and let them generate assets pegged to multiple currencies against liquid crypto collaterals. The framework has also built a stack of libraries to achieve this. It makes smoother running on the EOS blockchain for easy development of end-user applications like a gateway, block producer voting dApps that communicate with core logic. In short, Equilibrium aims to provide a simple yet intuitive user experience. It is not necessary to have relevant developer experience or even much technical knowledge about cryptos in general while on Equilibrium.