How does EOSDT work?
Each EOSDT stablecoin is backed by digital assets stored by a secure Equilibrium smart contract. Anyone may lock their digital assets there as collateral and issue EOSDT against it.
How do I obtain EOSDT?
Use the self-service gateway at https://gateway.eosdt.com/ to deposit your collateral and generate the desired amount EOSDT against it. You may also buy EOSDT from various exchanges that list it.
What keeps EOSDT prices stable?
Equilibrium incentivizes third-party participants, known as arbitrators, to maintain EOSDT’s USD peg. Arbitrators are automated programs that search for arbitrage opportunities when EOSDT’s price deviates from the peg. They also participate in liquidation auctions to ensure timely management of liquidated debt and collateral.
What can I use EOSDT for?
EOSDT is stable cryptocurrency with a predictable price and low volatility versus its peers, so it’s suitable for a wide range of financial activities. For example:
- Leverage: Users can get more capital by generating EOSDT without spending the collateral they have a bullish exposure to.
- Hedging: During periods of market turmoil, EOSDT offers a safe-haven for preserving the value of user holdings.
- Lending and borrowing: High volatility creates an uncertain lending environment where borrowers and lenders can’t effectively gauge how risky a loan might be. EOSDT’s low volatility is perfectly suited for stable, predictable loans.
- Payments/online purchases: Users can spend EOSDT with merchants that accept cryptocurrency. Merchants require a low-volatility form of money to accurately price their products and services.
- Decentralized exchanges: Decentralized exchanges are frequently unable to provide fiat-like quotes for currency pairs. EOSDT lets users trade their assets for a low-volatility cryptocurrency.
- Exchange pairs: It is difficult to track profit and loss when the currency pair’s value is volatile as users make trades. Using EOSDT as part of a trading pair allows for greater price predictability.
How much does it cost to use EOSDT?
Users may currently lend themselves EOSDT at an APR as low as 1%, payable in NUT tokens at the time of loan repayment.
Why the need for overcollaterization?
To make sure that new EOSDT cryptocurrency won’t be subject to collateral runs or speculative attacks, we must maintain a collateral backing of at least 100%. The 170% figure comes from analyzing current levels of collateral volatility.
How is my collateral secured?
Your collateral is held in an EOS-based smart contract. The contract has been inspected for security by independent third-party auditors. No users or other contracts have access to your funds.
How do I access the platform?
The Equilibrium framework’s self-service gateway is located at https://gateway.eosdt.com. You will need Scatter Desktop Wallet to manage your accounts and connect to the EOS blockchain. If you’d rather connect to the jungle test network, please see this post on how to change Scatter connection settings. Mobile users should use Lynx Wallet to connect to the framework.
How do I connect to your API?
You may use our EOS.js library to communicate directly with Equilibrium’s contract bundle. Please see our github for details on library implementation.
Which crypto wallets are compatible with Equilibrium?
The Equilibrium framework currently supports Scatter for desktop and EOS Lynx for mobile devices.
How do I generate EOSDT?
To generate EOSDT, a user needs to provide EOS collateral. With a current collateralization level of 170% for every $1.7 USD of collateral supplied, users may generate 1 EOSDT. EOSDT generation is possible through desktop and mobile interfaces located at https://gateway.eosdt.com
How do I pay back EOSDT?
Simple — just use https://gateway.eosdt.com to return your EOSDT on payback button. Make sure you have sufficient NUT holdings to cover any admin fees.
What fees are associated with using EOSDT?
There are two types of fees in the EOSDT ecosystem. First is the equilibrium fee, which is basically an interest rate on your EOSDT holdings. This accrues continuously and is due when you pay back your EOSDT. This fee is currently set to 0%. The second one is the admin fee, which is payable in NUT tokens when users pay back their EOSDT. This fee depends on the fraction of the total EOSDT paid back on a position, and it permanently reduces the NUT token supply. The admin fee is set to 1% APR at launch. Neither of these fees may be changed via the governance process.
What happens when the collateralization level on my position falls below the critical level?
This means your position has become undercollateralized, so it will become margin callable. This means that anyone may liquidate your position, reducing the position’s EOSDT debt to zero and transferring enough collateral to the liquidator to cover all the EOSDT you owe, plus a 20% penalty.
Who are the arbitrators?
The liquidator contract’s design lets Equilibrium users compete for arbitrage opportunities. We call these economic agents ”arbitrators”. The liquidator contract constantly offers liquidated EOSDT and collateral for sale. An arbitrator bot can margin call risky positions and buy their bad EOSDT or collateral from the contract. Any user may run the bot to compete against other users, and they’ll be buying surplus EOSDT and/or liquidated collateral at an incentivizing liquidation discount of 5% off the current oracle price.
How do you use the liquidation penalties you acquire?
After there is no bad debt left on the liquidator contract, all the excess collateral to the collateral pool. It gets evenly distributed among all of Equilibrium’s collateral holders, giving them more EOS every time a margin call happens.
Why make another stablecoin?
Our stablecoin is backed by crypto assets, ironing out the volatility inherent in so many other cryptocurrencies. EOSDT is pegged to the US dollar, so it serves as a strong store of value in times of market downturn. Because one EOSDT always equals one US dollar, it also works as an intuitive means of transaction.
How does EOSDT compare to other stablecoin projects?
Equilibrium is unique because it's the first collateral-backed, dollar-pegged stablecoin built on EOS technology. This enables fast transaction times, zero network fees, native governance features, and provides room for scaling and reinforcing the EOS infrastructure.
Why use the EOS blockchain?
Other blockchains are crowded. By using EOS, we ensure that our algorithms are speedy and efficient. Introducing software updates on EOS does not require central control and weird workarounds that are common with Ethereum, for example.
Why do I need to create EOSDT if I can buy it on the secondary market?
As an end user or trader, you would probably buy EOSDT on an exchange for your own speculative interest. This doesn’t mean you can’t lend yourself EOSDT via Equilibrium.
Is the smart contract code publicly available?
Yes, please see our github repository.
Who’s on the team?
Please see the about us section of our website, where we introduce our team members.
Why do I need NUT tokens? What purpose do they serve?
A NUT token is essentially Equilibrium’s take on the “decentralized autonomous community.” NUT tokens are analogous to shares of stock in a company — NUT holders can vote on company management issues and the framework’s risk parameters. They also receive compensation in the form of liquidation penalties for bearing the risk of buying additional collateral with their NUT stake when the system is under-collateralized.