The announcement includes updates to both their margin-call mechanisms and oracle system, facilitating a variety of crucial improvements to the framework.
The new multiple margin-call mechanism will allow for faster liquidation of under-collateralized positions. It will also enable multiple positions to be liquidated at the same time.
More accurate price feeds will also assist with the precision of the liquidation engine. This is made possible by the addition of a second oracle, Delphi Oracle. This new price data provider will supplement the feed already supplied by Provable.
These new features will enable the framework to reduce collateralization requirements from 170%, to just 130%.
Liquidation penalties have also been reduced to 15%, from 20%.
Overall, the new features will directly improve Equilibrium’s accuracy and response-time to changes in the price of EOS – ultimately maintaining a more reliable peg. The rapid transaction times made possible by the EOS network give the Equilibrium an advantage in this sense, over DeFi protocols built on the slower (but arguably more secure) Ethereum network.
In order to improve adoption of the framework and EOSDT token, Equilibrium has also launched its own referral program.
The program will support front-end developers, who assist new users to generate their own EOSDT tokens. These developers will capture 50% of the governance token fees paid by these newcomers, provided that they use their front-end developments.
Equilibrium will automatically pay out fees to a registered EOS address.
What is EOSDT?
EOSDT is an EOS-backed stablecoin, a component of a project called Equilibrium.
You can think of the Equilibrium framework as “the MakerDAO of EOS”. It is a smart-contract-based system, which is governed by holders of the Native Utility Token (NUT).
Alejandro is a blockchain writer and consultant who has been involved in the space since early 2016. Being extremely passionate about this emerging technology, he has written content for a myriad of projects and news outlets.