EQ : defi

EQ : defi

EQ : defi

EQ is the core asset at the heart of EQUILIBRIUM interoperable money market, widely used throughout the system and the applications that run on top of it. here is one of the usecases of EQ

Bailouts and system liquidity

EQ tokens facilitate Equilibrium novel liquidation mechanism, called a bailout. Bailouts are far more reliable than the usual DeFi auction. Users earn a yield by securing loans in the system and locking crypto assets in Equilibrium’s bailout pools ahead of time. (Equilibrium EQ token is one of the accepted assets.) Providing this liquidity in advance assures that there is always sufficient collateral in the system for liquidating borrower debt.

Furthermore, you may use the EQ token as a collateral for borrowing stablecoins and other assets. This means that EQ token will act as margin against leveraged exposure to other assets, whether it’s spot crypto or synthetic derivatives (perpetual) markets. We may eventually come up with a set of incentives to make EQ tokens more appealing to use than other assets.

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