A couple of years ago, the overwhelming majority of the world’s stablecoins were running on Ethereum. But a report titled “2019 State of Stablecoins” revealed that only 50% of all stablecoins were built on Ethereum. This number is down from 60% in 2018.
Stablecoin developers in 2019 have started looking for something else. Some used a combination of platforms, others chose forks or their own or proprietary blockchains. Still others mastered the market’s current blockchains, like Stellar, Dfinity, and Bitcoin. But it seems that the most compelling and interesting stablecoins released in 2019 are built on EOS.
Let’s start with EOSDT, the decentralized stablecoin on the EOS blockchain, backed by digital assets and pegged to the US dollar.
Taking into account the stablecoin market share, which has expanded significantly from 1% to 3% today, we have to talk about decentralized finance (DeFi) applications. These are the key to extending applicability and use cases for stablecoins.
So how does Equilibrium change horizons for decentralized finance apps?
The EOS-based story of EOSDT
The Equilibrium team is building a globally scalable framework to provide people with reliable access to a stable form of money on top of EOSIO infrastructure. This is one of the first EOS-based price-stable cryptocurrencies.
EOS not only has zero transaction fees, faster transaction processing time, and support for smart contracts, but also allows for integration with highly scalable projects. This is crucial for a project that reached 2.5 million collateralized EOS just three months after its launch. It keeps growing quickly from there.
EOS has a very high competitive potential for the stablecoin market, because its EOS stablecoin niche was nearly unoccupied. So projects like Equilibrium have just started to cover a market gap.
The second important point is that EOS supports a community voting mechanism. Equilibrium is building a decentralized autonomous community inspired by EOS blockchain governance, but they are intending to reach more in this field.
The voting process for Equilibrium’s governance lets the community determine, modify, and vote for the key parameters that drive the framework. This directly affects the framework’s risk management and business logic. This process will eventually be fully delegated to the community, and will require the core Native Utility Token (NUT) to participate.
The project not only gains the benefits of being based on EOS, but even invents its own advantages for users and EOSDT owners. First of all, the project is live on the mainnet right now, which is crucial for any newcomers.
It offers the highest level of collateral protection and extended trading opportunities by monitoring real-time market prices through oracles.
With a built-in ability to leverage any DPoS architecture and provide a true cross-chain solution with DPoS consensus blockchains, Equilibrium looks to be a reliable and promising tool for stablecoin generation.
EOS is a rapidly growing platform that see high volumes in trading and DApp usage as well. There are about 20–50 new DApps deployed on the mainnet every month, and some of them adopt stablecoins like EOSDT, paving the way for more stablecoin use cases. These might include payments for online purchases, collateralized loan services, hedging, and leverage.
Equilibrium sees its competitive advantages in the DApp market in its flexibility, innovative use cases on different blockchains, and focus on mutual profitability in partnerships.
The great thing about projects like Equilibrium (and other new players) is that they are pushing the stablecoin market competition along by strengthening stablecoin adoption and making the whole crypto market more stable and mature.