>> Hi there Natalie, welcome. We're just going to wait a few minutes here before we get started, maybe two, three more minutes while we post the event across our socials. >> Yep, sure.
Already, I think maybe some people got a bit confused with the change in the event. Somehow we got locked out and had to create a new one, but we're recording in any case, so people will be able to listen to the show later. So welcome Natalie.
So yeah, welcome to the show everyone. We're here with Dustin and Natalie from Equilibrium and she's going to talk a little bit about what they're doing and some current events on the road map. So yeah, I wonder if you just go ahead.
I had an introduce yourself Natalie and tell us a little bit about your role in the equilibrium project. Yeah, sure. Thank you very much. I'm super excited to have this AMA today with the Darwinian community and thanks for having me here. My name is Natalie from Equilibrium's Business Development Team. So basically,
equilibrium is a one-stop-defi platform with high leverage in borrowing and trading without compromising system stability. As for my background, I come with almost a decade of experience in trading and structuring of interest rates, derivative products with an investment bank. I was
also a trader in basically market making government bonds, then later on I transitioned to a CFI, basically a initial exchange offering platform where I was involved in designing tokenized financial products and also heavily involved in the ecosystem development. Yeah, so that's basically a bit about
myself and what equilibrium basically is. Fantastic. Thanks for joining us today. So yeah, we want to learn a little bit more about equilibrium. Now, everyone might be familiar with equilibrium. Can you tell us in a few words what was the idea initially and how did you
you guys come up with the final product? Yeah, sure. Yeah, so how they started like the initial idea was to actually create a better version of MakerDow where users can use the portfolio of like multiple cladtrals for minting our stablecoin. So basically equilibrium
has a stablecoin, a native stablecoin called EQD. So with what we have built, we actually figured that we could actually do some minor tweaking and expand it to a complete money market functionality. And then we sort of think when there is landing and boring, there would be liquidity
So I like the classical lending protocol where keypers are used to monitor liquidation ratio and liquidated positions are an option of. We kind of decided that we use an innovative approach on this. It's called insurance pool to secure loans in the system.
Then later on, we finally figured that we actually need a DAX for insurance to effectively manage the data collateral that they receive. So then we built an order book DAX. So we have come a long way and this is how equilibrium ended up with three core functionalities.
So, we have a lot of opportunities, namely one is our portfolio back stablecoin called EQD, a money market functionality, and also a fully-on-chain auto book. That's basically where we are today.
I've kept an eye on equilibrium over the years actually involved in that early on with the NET2 EQ. So I'm actually very keen of equilibrium. So it's good that you guys are here at this point. But yeah, we're really interesting. You guys are coming out with the beta. So let's touch on that a little bit.
bit. What stands behind the equilibrium beta? What did you come up with at the closed beta instead of launching a final product? Yeah, sure. So basically the idea of closed beta is to actually allow users to try out all the functionalities that we have. Like for example,
Lending, borrowing, margin trading, and most importantly within a safe playground environment. So we think this is super important because users then can freely experiment and explore various use cases without the fear of actually squirming things, right? So close Vida allowed the learning process to basically take place.
in a safe environment. And we think another huge benefit of launching a closed beta first before like the production launch is actually to allow us to fix any issues or bugs, you know, should they be discovered during the closed beta phase. So this would be stupid helpful to actually ensure
that if any of these issues are there, they get taken care of before the actual production launch. Yeah, that makes a lot of sense. Of course, you want to test out the product before it's fully released. I really anticipated to use the products myself. So what are the benefits of participating in the beta in particular?
So during closed beta, the closed beta would basically support various parity native assets, stable coins and more. So users can actually take this opportunity to explore how they can best use these assets during closed beta.
Like I mentioned earlier, we are basically free to experiment and tweak some of the parameters. Like, for example, we can just experiment a bit. Like, let's say I were to use .s collateral to borrow, let's say, EQD. And this is my interest rate. And my interest rate is x. And what if we
Like I add stablecoin as collateral into the collateral mix, my interest rate will actually change accordingly. It will may lower because the volatility of the overall collateral basket is now lower. And therefore, as a result, the interest rate is also lower. So basically, we can just freely
tweak these parameters and observe how boring calls change accordingly. So I think it's a pretty interesting way and especially in a safe environment to do this sort of experimentation. So in short, like beta basically lowers the barrier to experiment and of course opportunity
to be rewarded in EQ at the same time. Yeah, that's a really great, good way to get the public involved. Tell us a bit more about the advantages. As a beta participant, what can I do in Equal Room now? And what kind of financial instruments do you have?
Yeah, sure. Like mentioned, like the key advantages of equilibrium, like what for one, we accept a diversified portfolio of assets as collateral for borrowing. And secondly, we actually use a risk-based pricing where, as mentioned, like borrowers can actually affect
interest rates by adjusting their collateralization ratio and what sort of collateral that they put in in a collateral basket. And thirdly, it would be the insurance pool to actually help secure loans in the system. So basically how it works is that insurance pre-platched liquidity to ensure systems that stability.
So as a better participant, there are lots of use cases we can explore. Like for example, we can learn our assets and earn interest from borrowers or we can ensure the loans and earn like majority of interest from borrowers that would be 70% because interest are basically
helping to ensure the system and therefore higher risk higher return that sort of thing so they will actually enjoy 70% of the boring income from boroughs and plus the 5% liquidation buffer. Yeah, so and of course, I think the most exciting thing to do is actually take a view on the asset either go long or go sharp
the text. Like, basically, let's say for example, during the two week of close beta, I have a strong view like the market is going to crash further or going to, you know, the cell is bottom, it's going to be, you know, rebound and stuff like that. I can actually margin, longer margin short to just basically maximize my portfolio
So these are the things that I think one can can make use of and learn. Yeah, so basically these are the advantages. Nice. Yeah, it really benefits either direction for market sentiment. So yeah, it's very interesting to see that. You did mention the interesting
insurance pool. Maybe we can touch on that a little bit more. Can you please tell us about it and what kind of protection mechanisms equilibrium has to ensure system stability? Yeah, sure. Basically, how it works is that users pre-placially equity in insurance pool to secure loans and assistance.
So when a borrower gets liquidated, his collateral and that will be transferred to the entire insurance pool where each insurer will get his share of that and collateral plus the 5% liquidation buffer because the absolute liquidation happens at 105%. So if let's
say the value of boroughs collateral value or the so-called LTV ratio drops below 110%, boroughs basically get a 24-hour warning and then liquidation is too good after that. And the 105% is the absolute liquidation
So then the boroughs, debt and collateral that then distributed across the entire insurance pool. So in short, like every insurance is given his share of collateral and debt and based on his relative share in the entire insurance pool. Of course, he will be also getting the five
So this is basically how it works and also there is like an on-chain intimacy of like protection mechanism that equilibrium has is also there is the on-chain risk control mechanism like how it works is that for example like when there is little
that and a lot of insurance liquidity to absorb that in the system. The interest rate will scale lower to attract borrowers with cheap loan prizes or very low interest costs and vice versa. So which means, say for example, when there is too much debt compared to insurance liquidity under the on-chain
test that we have, then these interest rates were actually scale higher to attract interest and this encouraged borrowing with high interest rates. So that is sort of like the on-chain risk control mechanism that we have. Great, yeah, there's a lot of flexibility there. That's really good.
for participants. So you guys have a fully on-chain order book, Dex. Tell us why having a Dex inside your ecosystem is one of the vital developments. Yeah, actually, the thing like the purpose of most borrower activities
today is for trading. However, what we observe today with most defy platforms is the fragmentation of functionalities. Therefore, users will usually have to borrow from one platform, say Arve, and then trade on
another platform. So this complicates the whole user experience where they have to like help from one deck to another. We are trying to solve this problem by having like money market functionality and our own chain auto book decks like all under one roof. And on top of that, the decks actually
also serve another purpose. So for example, whenever loans are liquidated, insurance will receive like a portion of debt and collateral from defaulted borrowers, right? And plus the 5% liquidation buffer. So the tax serve actually has an important value for these insurers to basically like effectively
manage their debt in collateral. So they get to crystallize their 5% liquidation buffer as revenue. So basically whenever they just get that whatever you know liquidated collateral and loads they they have a place to just immediately you know sell sell out the collateral and just pay off the debt and just crystallize the 5%
buffer. Yeah, so that's that's another importance of DEX. Yeah, DEX is a very important especially inside of the ecosystem. So that's very very important. So what about the liquidity and how will you guys incentivize liquidity providers to increase liquidity?
And do you have a liquidity bootstrap program? Yeah, actually, this is a great question. We all know, liquidity is key to defy protocols. The higher the liquidity, the lower the slippage and the better the user experience. So basically, liquidity
forms part of the user experience or part of the product actually. So after equilibrium's production launch, which is expected to happen like probably like two weeks after the closed beta has ended because we need like probably two weeks to fix any issues should we discover them during the closed beta phase.
So after our production launch, we'll be conducting a series of liquidity bootstrapping events, focusing the focus will mainly be on dot-sama assets from the projects we are integrating via XEM. So users will be rewarded with attractive APIs for providing liquidity.
Hopefully, by the end of closed data, I'm sure all users with already be very familiar with our core of functionalities. And therefore, we'll be able to choose which pools they prefer to provide liquidity to based on their risk appetite. Because for example, providing liquidity to landing pool is lower
APY but they basically don't bear liquidation risk. But then if you, let's say provide liquidity to insurance pool, it's higher APY but of course one are required to actively manage their position like more need to their accounts and basically just actively manage the collateral and
the debt that received, crystallized the 5% buffer as revenue plus they of course earn a higher APY. So it's basically sort of like a high risk high return kind of product versus like low low low risk and lower return kind of product. So yeah. So basically we will definitely launch a series of liquidity boost prep programs or
attracting liquidity to bootstrap the platform. Yeah, it's really exciting to hear. I definitely want to love to see that once that's released. Hopefully you pardon that. As the Darwinian community member, how can I benefit by participating in the equilibrium beta?
Yeah, I think it's like basically just like learning, trying and having lots of fun and of course the opportunity to get rewarded at the same time. I think the ability to have this so-called DeFi education takes place in a safe environment is super important, especially those who are not super
were familiar with DeFi protocols. I'm not sure how many from the Dharina community are super familiar with DeFi, but I remember when I first started or first used or first interacted with DeFi protocol, they look super, super, super daunting to me. Like I got to like sign so many transactions and I get a
sign approval and stuff like that. So I had a lot of like dals and you know transactions are immutable and irreversible on blockchain which are the benefits but it can be super scary if done wrong right. So personally if I could have a chance like this to just like experiment and have fun it would be great like especially within a safe playground sort of
environment. So I hope in this way it adds value to the Darwiner community from the perspective of like experimenting, self-educating and having fun and potentially earning rewards. Yeah, it makes a lot of sense. And I have the same sentiment, too, is the first interactions with DeFi. It's a little daunting, you know, there's all these aspects
to it. But yeah, this is a great way for participants to be able to enjoy the DeFi aspect, but also learning rewards as well. So yeah, this is great. Just to touch on like, like how do we get started and like maybe point some, or
community to learn more about equilibrium? Sure, you mean like where can we learn more right? So basically it's yeah it can just follow us on our socials and we have equilibrium.io website where there is knowledge base so we have equilibrium VK docs there so
So basically by glancing through the Viki docs, you will be able to learn about more potential use cases and the risk model and the interest rate model that we are using and what Marker maker Poo is about and basically tokenomics information. So just head to equilibrium Viki, you basically can
find everything about our product line and the models and the use cases and stuff. So that would be a great way to self-educate. Another thing is of course just check out our socials, our Discord to learn like the latest news about our basically development and also the close beta of course.
Sounds great. Yeah, I just pinned up on top information from the beta. Of course, you can learn more about Euclubrium from there. Megan, do you want to add anything before we open up for the community? No, just a lot of information there from Natalie to unpack about the equilibrium
and not also the closed beta. Of course, our Winnie, we already assembled our team and got everyone registered and we're looking forward to participating in the coming days. So yeah, we look forward to more news about that. And it looks like we have a few people
in our audience that have their hands raised and would like to ask questions. So maybe we'll go ahead with let's see do we have your lesson, lesson JH and would you like to go ahead please,
So what are the collateral on your borrowing system? And as a user or as a borrower, do we need a QAC?
or doing a house trick on your system to borrow an asset from you on your platform.
Thank you very much for your questions. There are two parts of your question. One is what sort of assets would be accepted as collateral. As for close beta, it will basically be parachained native assets. For example, what we will visit.
is Akala token, Glimmer token, Astar token, and Parat token, and stable coin liquidity, BTC, EVE, EQD, and other Paragene native assets as well. I don't have the whole list on top of my head, basically, when you head to
So, in the middle of the day, you will be able to see what sort of access will be supported as collateral. But when we, after equilibrium goals life, we will be having XM integration with various parachene projects. For example, we have a really completed test and integration
a bio-xdm with moonbeam, with parallel, with interlay, with a color. So after we got live into production, we will actually of course integrate as in enable xm integration into production as well. So these are the assets that we will be supported as collateral for borrowing, but of course on the list
will just keep on going as we continue to integrate with more and more parachene projects. So stay tuned on that. So on the first very first sort of batch of assets that will be supported will be EQD, stable quantity, the native parachene assets that I
mentioned earlier and of course, thought as well. So these are the first batch and of course the list will continue to grow as we continue to integrate more with more projects. And secondly, as on your question about like how safe the borrowing can be, so basically as I mentioned earlier, lenders
basically just take liquidity to lending pool and they do not bear liquidation risk. The liquidation risk is bear by insurance. So basically there are three layers of defense for equilibrium system. The first layer of defense comes from the over collateralization from borrowers.
that is the very first layer of defense. The second layer of defense will be the insurance pool. So that because insurance basically insures the system in the event of chaotic situations. So let's say borrowers just get liquidated. The insurers are there with their liquidity.
to basically ensure the system's stability. So this is the second layer of defense. The third layer of defense is like, let's say during, you know, extreme case scenario where the dead value in the insurance pool basically exceed a total collateral value, for example, then we have this stability fund that
will come into play and processes any unhandled liabilities. So this stability fund is initially funded by own capital and thereafter will be actually replenish, if I were a portion of base fee generated through borrowing activities. So how it works is that the very minimum
fee that the borrow pay is 2.5%. But then this 2.5% varies, like let's say for example, this borrow is very livery, highly livery, then of course this borrow will have to pay a higher interest rate, but anyway bare minimum is 2.5% of which every 1% will channel
This is the 1% is basically the base fee of which 50% would go to collaters and 50% would go to treasury. And therefore this is how we fund this stability fund. So this stability fund is there is like a last sort of we can think of this like insurance
policy that guarantees the system recapitalisation in case of like extraordinary market events. So to recap, we have like three layers of defence. The first layer will be the over collateralisation from Boris, the second layer will be the insurance pool and the third layer will be the stability fund.
But I've always been a great question, bless it. I wonder, big bowl. Do you want to go with the next one, please? OK, how can I go soon?
Okay, my question is how much margin a user can enjoy on your platform and which coin or token or currently available for margin trading?
Yeah, so good question. So basically the maintenance or the initial margin or the maintenance margin is 120% so you can go basically go up to 5x but then when this margin of course it depends on the class
Natural value, let's say it drops in value and this percentage drop below 120%. Let's say drop to 110%. You basically receive like a 24 hour kind of warning like you have to top up to maintain a margin of minimum
120% out you get liquidated after this 24 hours. And when it just sharply dropped to 105% and that is like the absolute liquidation ratio and your liquidation just happens. And what sort of coins that are accepted for margin trading?
Basically, margin trading is the same as the borrowing mechanism. So basically, any assets that are accepted as collateral will be accepted for margin trading as well. So they work the same. Because we work with a portfolio of assets rather than individual assets.
Thank you. Thank you so much for that question. Would you like to go ahead with the next one, Omega? Can you hear me?
Yes, yes. Okay, so I have a question for EQD stablecoin. So how you ensure us that your EQD stablecoin will not be big like Rona USD.
Yeah, the tbhagging of Lunar USD is because they are using their own asset as collateral. So when that goes down, the trust diminish and there is like a vicious kind of, you know,
It's like a dev-spiral kind of thing. So how we actually age against that or mitigate is that we accept a portfolio of assets. So how is this much better compared to a single asset vault is that the more diversification
In collateral basket we have the safer it would be or a so called lower risk it would be so imagine we not just accept like one asset we accept like various parity native assets We also accept various version of stablecoin liquidity in S collateral
So, this EQD is backed by a multiple basket of collateral, so let's say Tush would hopefully this does not happen. Like one of the underlying assets like DPEG for example, because we could use USDC or USDT as collateral to mean EQD.
say for example, touch with some one of the asset defects, but it would still be relatively safer in that sense because it is backed by a whole bunch like a basket of assets. So we would say that the impact is limited in that sense. So in that sense,
I would think that EQD is a superior choice compared to Luna's USD. And of course another most important factor is that it is a substrate native. So it actually eliminates the bridge breeze. So because bridge is one of the you know attack surface, right? So but then because it is a
trade native, basically you can just buy a XM transfer to other parachains and no bridge is needed. So in that sense, it is also a more beneficial safer and better UX from in essence. Yeah. Thank you. Thank you so much for that question.
would you like to go ahead with the next one? Hello. So my question is what's your plan in this adoption of equilibrium platform and at tech mode user and investor in equilibrium platform?
Yeah, so basically I think for a platform, actually it also ties to the long-term sustainability of a platform. So I think it boils down to like a good UI and UX, a very good product line that is useful to people. So I think that is
like super important. So initially we started off with launching Gen-Shiro on Kusama and then we actually learned a ton from that. Like we got a lot of feedback from users like there are some issues or bugs with the UI or some
some UX can be better. So we actually take all those in and we are fixing those issues when we are also implementing all the changes and improvements on equilibrium. So that's like through the learning process, we actually realized that hey, some of the things can be made better, some of the experience may be
maybe a bit confusing to users, for example. So we sort of simplified that. So I think in short, to attract more users, I think the key thing is really, really the UX. How do we simplify user experience? And of course, apart from that,
a good product is needed. So I think for one, initially to attract users would be the UI UX. And the second point is that for long-term sustainability, we still need a very good product. So that's what I think. If the products are good, basically users are here to stay.
Thank you so much for that, champ. David, do you're up next? Would you like to go ahead with the next question, please?
You're going a bit robot there. I wonder if you can check your connection and try again, please.
David would you like to try and ask your question again please?
Can you hear me now, man? Clearly? Yes, we can. Do you have any plan to provide more new services or products in future? If it is, what will be the services or products?
Yeah, we do. One would be the curve pool, which we have not actually implemented that in close beta. So we think it is important for us to have like a stable swap pool. We actually have this so-called
We actually work with Curve to come up with like a so called official frog of curve to have that sort of stable swap pool. So we after the close beta and after the initial production launch, we will come up with this curve stable swap pool on the platform so that uses our
Any users or insurers can actually use of it to swap any USDT, USDC or any native subprinative stablecoin on the platform. So that is one. And secondly, we will be coming up with UAMM pool as well.
This feature will not be available during closed beta, but yet because we are still working on it. So we wanted to have this new AMM pool where we can cater for the sort of a need where users can easily swap any version of dot wrappers in a equals
system because what we noticed today is that there are just so many different versions of Liquid.reppers like you know the Liquid Crowdloan Dot Reppers from various projects and Liquid.Sticking records from various projects as well but we don't see any
So we wanted to cater for this sort of need where we have like a new AMM pool where users can easily swap from this version of dot to the other version of dot on top of that they can use the liquid
dot-repas to use it collateral for borrowing lending activities and also margin trading. So basically, we think it's a good opportunity for us to provide more utility or use cases for these liquid dot-repas and also a venue for them to easily just swap from one version to the other.
amazing. Wow, there's lots of exciting news on the go at equilibrium and nice to hear about more details of the closed beta and thank you so much for joining us today Natalie and for everyone in our audience and for those who ask live questions.
Stay tuned for details of our next AMA coming up next week. Any closing thoughts, Dustin? I just wanted to plug that Equilibrium is going to be in token 49, 2049. So if you guys are there,
You can see them and then there's a community call next week so stay tuned to that any more updates with equilibrium. Oh yeah, yes, we will be going to Singapore next week for the 2020 event. Thanks for reminding. Yeah, if you guys have any of you guys have
to be there in Singapore next week. Feel free to drop by. Happy to chat. Yeah, and thanks again for having me here today. Thank you very much. Thank you, Natalie. It's nice meeting you. Thank you. Thanks again for joining us Natalie. Definitely give equilibrium a follow
all over all the latest updates and stay tuned to Darwinia AMA's channel for details about our upcoming guest, Mention Novel next week. Thanks so much for joining us, so be on the one-mix with me. Thank you everyone, have a great day. Bye-bye.