The introduction of cryptocurrency and the blockchain technology to the world generated a lot of mixed reactions among a lot of people. It was wholly embraced due to its faster transaction speed, scalability, transparency, and it's decentralized nature. On the other hand, it's mass adoption into the financial sector wasn't encouraging at all as the cryptocurrency markets had a very high volatility. No cryptocurrency has been able to avoid this sharp and significant price fluctuations but this didn't stop the growth of the blockchain technology and it's integration.

Thus there was a dire need for a much more stable, reliable and secured system that will enable users to make use of cryptocurrency in financial markets. As such a group of experts came together and brought about the Equilibrium.

Equilibrium creates an interoperable decentralized marketplace where a new breed of “stablecoins” will enable cryptocurrency users to access the major financial tools for capital security. The advantage the stablecoin has over the usual cryptocurrency is that it’s usually backed by other stable assets like the USDollar thereby giving it a low volatility and ensuring price stability.

The Equilibrium Project

Equilibrium brings about an intuitive and technical hub where stablecoins and other DeFi projects can be created and utilized with ease. The platform contains full-featured framework of smart contracts that generate the stablecoin “EOSDT” which it's users can put into circulation by using a collateralization model that backs their digital assets.
This Equilibrium framework is built on the EOS blockchain and the EOSIO technology stack as its faster, has a very low transaction fee and a very high scalability.

Uses and Applications of the EOSDT stablecoin

By using the Equilibrium platform, users can make use of the platform to enable collateralization functions with the use of the EOSDT stablecoin. This way, they deposit and withdraw collateral, and pay them back when the time is due. This stablecoin can also be used to hedge against market turmoil, provision of fiat like quotes for currency pairs on decentralized exchanges as well as using them for merchants that accept cryptocurrencies as payments.
Other functions in which the EOSDT can be used are also Staking in which users can lock a certain amount of cryptocurrency for a certain period of time and earn passively in the process.

Advantages of using the Equilibrium Framework

• It enables stability as the platform ensures that the price of EOSDT is always equal to 1USD by valuing collateral with an external feed, and constant monitoring the ratio of total EOSDT supply to the collateral.

• It helps in the management of risk by making use of Overcollateralization. It does so by making sure there is always an adequate amount of collateral in the system to mitigate all the relevant positions, thus there will be a collateral backing of 170%. This is possible as the project has a very high liquidity support.

• It offers a very low fees of transactions due to its governance mechanisms and currently there is two types of fees on the platform.
  

  The Admin fees which is being used to govern the supply of the NUT tokens while managing its ROI
  The Equilibrium fee which is used when users performs market action across a stablecoin position

• It also offers a real time monitoring system called Oraclize that monitors hanges in the prices of the collateral market, and triggers margin class for undercollateralized positions

• It offers a very secured platform that prevents risks due to malicious attacks, bugs on smart contracts, shocks in the collateral pricing, pricing and data feed errors and failures of centralized infrastructure. This mechanism is always active during the process of developing, deploying and operations of the Equlibruim framework.

• Finally, the Equilibrium framework is a fully tested and ready made product that’s operational.

At present, the Equilibrium framework runs on the EOS blockchain technology and the team is actively working around the clock to ensure cross chain solutions to enable users to make use of the EOSDT stablecoins on other blockchain technology such as the stellar, ripple, Ethereum and a variety of others.