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Get To Know Equilibrium’s Stablecoin, EQD

Published date: November 3 2021

If you’re going to set a strong tone for the future of finance, you need a good dollar to do it.

EQD is Equilibrium’s USD-pegged stablecoin that works to represent value in its DeFi ecosystem. As a decentralized stablecoin, EQD enters circulation when users open a collateralized debt position on our platform using a basket of varied crypto.

By overcollateralizing these mixed assets within our interoperable smart contracts, users can derive steady, intuitive value from their crypto in the form of EQD. They can then use it to trade, lend, and earn yield on our platform. Average borrowing rates for EQD are lower than on other stablecoins with the same loan parameters while using a basket of diversified collateral significantly reduces volatility risks for borrowers.

But EQD isn’t strictly limited to Equilibrium — its use cases also extend to Genshiro, our Kusama-based canary network, and Epsilon, an official Curve implementation running on Substrate. It’s a hard-working stablecoin!

In Genshiro EQD can be used as a collateral for loans and as a liquid asset for the liquidity farming. Epsilon’s stablecoin pool currently supports EQD, DAI, USDT, USDC and BUSD. You can deposit EQD there and start earning yield, or swap EQD for major stablecoins seamlessly.

EQD runs on top of our on-chain risk management system and bailout mechanism, which are core system components that underpin the entire Equilibrium platform. You can learn more about these components right here — they work to make our stablecoin stable, and we think DeFi developers along with regular users seeking an easy way to represent USD values with blockchain technology are really going to like it.

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Get To Know Equilibrium’s Stablecoin, EQD was originally published in Equilibrium on Medium, where people are continuing the conversation by highlighting and responding to this story.