Have You Heard Of The Equilibrium Genshiro Platform?
The word ‘cryptocurrency’ is such a global word today that is sparks an interest in almost everyone. There were times when the only cryptocurrencies we knew were the Bitcoin, Litecoin and Namecoin, even the Ethereum we know today wasn’t that popular.
Unfortunately, lots of people shied away from these great platforms as they mostly attributed them to illegal websites and spam details but like the flip of a coin, the world of cryptocurrency changed.
I can’t even begin to name the cryptocurrencies in existence today as it is one of the most lucrative business ventures.
But the big question remains, which platforms should be invested in?
Have you heard of the Equilibrium Genshiro parachain?
I’m pretty sure you’re thinking right now, “What the hell?” But of course, I’m not messing with you, come on, let’s learn together.
Equilibrium Genshiro parachain is a cross-chain platform founded by a cryptocurrency enthusiast, Alex Melikov, with the sole purpose of helping users earn income, borrow and trade on the margin round the clock.
But before I delve into the features of this great platform, I’ll love it for you to understand the concept of Decentralized Finance, what we know as ‘DeFi.’
The Concept of Decentralized Finance
Decentralized Finance is an emerging and leading ecosystem of financial applications and protocols built on blockchain technology with manipulative capabilities such as Ethereum, Solana, Binance Smartchain, and lots more.
These transactions get executed automatically through the use of smart contracts on the blockchain, and this must include agreement of the deal.
It is basically a system where private individuals serve as their own banks with total control over their finances or where they reserve total financial autonomy. This includes how the money is being spent, staked, gained, lost and even invested; without any interference from the owners or the stakeholders of the blockchain itself.
If you’ve ever wondered, “What would a world without banks look like?” Definitely, the answer lies in decentralized finance (DeFi).
Problems Associated with Decentralized Finance
Despite all the amazing benefits of DeFi, threats and issues that arise from its use cannot be underestimated, these problems include:
- Disintegration of the DeFi Space: The swift rise in DeFi has led to the invention and development of so many decentralized applications (dApps), concepts and financial models. As a result of this diversity and the hosting of other blockchains on the Ethereum blockchain, the DeFi process that was supposed to be effectively managed by end users only, now has a long chain of middle men, making transactions like the peer-to-peer transfers very risky. Not only this, but furthermore, users are forced to monitor their financial positions across various platforms turning the DeFi process into a very cumbersome one.
- Missing Cross-chain Composability: As earlier said, operating across multiple blockchains increases risks and uncertainties. These uncertainties force end users to find it more convenient to transfer values between different blockchains but by means of centralized exchanges, and this is also insecure as they have to entrust their funds in the hands of an unknown third party. But be it as it may, the bigger picture here isn’t just this but the fact that liquidity in existing systems is isolated and limited by the boundaries of these underlying blockchain networks; thus, creating a barrier in cross-chain communication.
- Technological Risk: One of the greatest problems of DeFi is its technological constraint. Many of DeFi protocols are controlled and powered by the Ethereum blockchain, even up to nine of the largest DeFi platforms. And because of this, there is a very high increase in cyber attacks, bugs and network congestion but not only these, there is also the issue of high network transaction fees, failed transactions and liquidation issues and in extreme cases, it could all just stop functioning.
- Asset Risk: This is unarguably the greatest problem of decentralized finance, it is highly volatile. It is definitely no news that earlier this year (2021) the crypto market dipped and a whole lot of investors lost millions of their money. Due to the high instability of the crypto market, the prices of these coins are always fluctuating and it is possible to decline sharply, causing associated liquidity risks or low returns on investments.
- Compliance Risk: Because DeFi, itself is a decentralized market, it is always possible for many unincorporated organizations to operate outside the regulatory structures that exist around more traditional financial products. Due to the replacement of the traditional role of the bank as an intermediary or subsidiary body, there are always going to be problems but in cases where these problems are being compounded by these deviant organizations, these problems could lead to catastrophe.
Now that you’ve known and understood the concept of decentralized finance, I think we can move on with the Equilibrium Genshiro project.
As earlier explained, the Equilibrium Genshiro project serves to help users earn income, borrow and trade on the margin round the clock.
Now how does this amazing platform actually aid the lives and activities of these end-users?
Features of the Equilibrium Genshiro Platform
Generally, the Equilibrium Genshiro platform allows users to transact their business only with blockchain networks of their choice; thus, eliminating the use of middle men like the peer-to-peer system and their various problems as discussed above.
But in details, how does this platform impact the lives of users according to their needs? What are those features that help users earn income, borrow and trade on the margin round the clock? Allow me to guide you into this magical world.
- Staking: The Equilibrium Genshiro platform uses a system that allows users engage in risk-free staking by locking tokens into smart contracts that use it as a connecting portal to other blockchains. These smart contracts in turn use stakes for generating additional rewards from the inflation-based economies common in the Proof of Stake (PoS) system. And finally, the platform distributes the rewards to users. But here’s a tip for you, never use all your crypto assets for staking as the lock system might not allow you to withdraw the funds as at the time you need them.
- Lending: Equilibrium Genshiro platform enables users to lend out part of their assets to others who need or want to borrow them. But unlike other DeFi platforms that involve depletion of the assets being lended and inability of the lenders to leave at their will during such depletion, the Equilibrium Genshiro platform separates the concept of lenders and bailsmen, so far, on the interface level. As a result, bailsmen now have the choice of becoming a lender by setting a corresponding flag when providing cross-chain liquidity. But bailsmen who become lenders stand a chance of becoming entitled to additional system fees that arise from users borrowing their assets. Lenders on the other hand bear no risk of liquidation as they’ve now transferred this risk to the bailsmen. Furthermore, the platform has put in place measures to provide incentives to market participants and make sure that the liquidity of any given asset isn’t scarce.
- Bailouts: Bailouts simply means a rescue from financial distress. Bailsmen are united under one liquidity pool where they share risks and losses. This kind of system is best suited for highly leveraged borrowing which is quite essential for the growth of the DeFi community. This system allows a bailsman to withdraw funds from the bailout pool only after repaying a respective fraction of the accumulated debt.
- Borrowing: Now to the last amazing end user the Equilibrium Genshiro platform impacts greatly, the borrowers. Crypto assets carry a volatility risk, so when borrowers use them as collateral, it requires additional collateral and a fee. Equilibrium Genshiro platform gives borrowers an opportunity to supply different crypto assets as their collateral through cross-chain wrapping. Now instead of treating each crypto collateral as an individual unit like other DeFi platforms, borrowers are allowed to pay a nominal fee based on the ratio of their collateral and other associated risks.
Benefits of the Equilibrium Genshiro Platform
Definitely, you’ve started having a change of heart, right?
The Equilibrium Genshiro platform has many benefits but here are a few I’ll be discussing in detail for you to understand that this is the best platform currently for you to use for your DeFi transactions:
- Separation of Different Assets from Different Chains: This platform possesses the technological capability of going beyond the limits of the Ethereum blockchain. It achieves this goal by adding tokens from the Polkadot ecosystem and even from other blockchains and by so doing, transactions no longer have to bounded to ERC-20 tokens like other DeFi platforms, but, surprisingly, trading pairs can now have access to other blockchains, inasmuch as it is connected to the Polkadot system.
- Improved Speed and Low Transaction Rates: Have you ever faced a situation where you plan to withdraw money from your crypto wallet but the fees you have to pay, sometimes might even be larger than the amount you are trying to withdraw? So many platforms charge exuberant transaction fees in order for end users to carry about their businesses but at the Equilibrium Genshiro platform, it is shaped in such a way that the Polkadot technology allows it to overcome this issue, as there’s no mining and thus; a decision is reached faster than the Ethereum blockchain. Also, some off-chain workers allow traders to place numerous orders without paying transaction fees,thereby eliminating the transaction fees as opposed to other platforms.
- High leverage: Equilibrium Genshiro’s approach to modeling collateralized loans allows for competitively low levels of
collateralization of user portfolios, which means that high leverage is achievable.
I guess that settle’s it then, honestly, the benefits of this platform are just too great. This was just an introductory article into our platform and here’s a link to the ambassador jobs available at the Equilibrium Genshiro platform.