EQX is the native token of the innovative new DeFi platform, EQIFI. To understand how EQX is positioned to change DeFi, we need to take a look at the state of DeFi; where we started and how far we have come, what challenges we face in the DeFi space, and how EQIFI and its powerful token, EQX, are uniquely positioned to give DeFi the upgrade it now needs.
First, a bit about EQIFI: It’s the world’s first DeFi platform, partnered with a registered, licensed, and established international crypto-friendly, digital bank, EQIBank. Founded in 2015, EQIBank currently serves clients in over 180 countries.
Though DeFi — Decentralized Finance — is now proving to be the “killer app” everyone in the space has been waiting for, it is still in its early stages. The meteoric rise of DeFi formerly began only in 2020 as the DeFi market capitalization grew, from $686 million on January 1, 2020, to $15.6 billion a year later. At the time of this writing — August 23, 2021, the DeFi market cap is $85.24 billion.
DeFi may provide lower costs, better security, more privacy, and greater accessibility worldwide, yet often with its own risks and other issues. As DeFi platforms worldwide face greater scrutiny from government regulators, the future seems uncertain for this innovation in wealth preservation and creation. Let’s look at some issues facing the industry today, and ways EQX, the utility token of EQIFI, can help usher in the next era of DeFi.
1. Ease of Use
The first issue facing most new users of any DeFi platform is difficulty in using the platform itself. The use of EQX and the EQIFI platform is streamlined for ease of use. Not only is the DeFi platform designed as the ultimate in user-friendliness, but its symbiotic relationship as a bridge to EQIBank makes every experience with a variety of cryptocurrencies and fiat quick and seamless. When it comes to seeking a loan or gaining other financial services across the platform, EQX holders are given priority and assessed with a more favourable loan-to-value (LTV) ratio — or lending risk rating — based on the number of EQX held.
EQIFI provides a uniform platform for DeFi products with the ability to apply for EQIBank accounts, loans, custody, debit, and credit cards. This integrated relationship of a DeFi platform with a licensed and regulated bank is unique and boldly paves the way for other institutions to follow in the future.
2. Security & Trust
DeFi today offers a reduction in intermediary involvement through automated functions via smart contracts, but technical security flaws and hacks still abound.
Just over a week after $600 million was hacked from the Poly Network — the largest decentralized finance security breach in history — Japanese exchange Liquid Global was hacked, with over $90 million in assets stolen.
About these hacks, Matt Hougan commented:
“It’s like a persistent reminder that we’re still extremely early in this space.”
EQX, an ERC-20 token based on the trusted Ethereum network, and the EQIFI platform offer the highest, most advanced level of security available today. As the first DeFi platform powered by a licensed and regulated digital bank, it offers its customers unparalleled peace of mind along with its full suite of financial products for preserving and growing wealth in these uncertain times.
Some DeFi platforms are decentralized only to a degree. This partial decentralization may refer only to a protocol’s governance or specific changes to those protocols. The degree of governance decentralization varies. Some are primarily governed by venture capital investors, while others have more user governance communities beginning with governance by a foundation which may eventually be decommissioned, allowing the protocol to be governed under the control of decentralized autonomous organizations. This shift affords more power to token holders while providing a mechanism to protect token holders from collusion and censorship.
EQX token-holders govern the EQIFI protocol. The EQIFI community has complete control over all proposals, voting, and the execution of changes via the governance functions of the platform. The community may propose new asset classes, interest rates, and fees. Through the use of EQX, EQIFI sets new standards, establishing trustless transactions and driving real-world adoption.
Decentralized platforms are often slower than centralized ones. According to an analysis, centralized cryptocurrency exchanges take an average of 10 milliseconds to execute orders, while decentralized exchanges take a minimum of 15 seconds. A decentralized exchange may take up to one minute to complete an order.
Problems making current DeFi systems slow or even unreliable are generally tied to low liquidity and difficulty switching between blockchains. With diverse currencies and tokens, the number of traders available may not be sufficient for seamlessly moving assets.
Perhaps the most attractive benefit of staking EQX is its high percentage gains. Rewards for staking EQX go as high as 25% APY. Token holders who stake EQX provide a valuable service adding liquidity to the protocol and are rewarded accordingly, affording a higher speed for all users on the EQIFI platform and setting an example for other platforms to follow.
Another risk with DeFi today is that non-financial experts often build these relatively new types of structured products. Structuring products is a complex practice best finessed by experienced financial engineers.
Due to a lack of experience in the still-fledgling DeFi field, risks stem from smart contract errors and others due to centralization on DeFi platforms not truly decentralized. A lack of insurance on loans and potential failure of the price mechanism represent risks as well.
EQIFI is led by a team of US, UK, and European fintech experts with over 150 years of combined experience and over 50 successful blockchain projects. The EQIFI management grew and exited financial services groups exceeding $1.3 billion. EQX and the EQIFI protocol are the results of this formidable expertise and experience. As DeFi matures, platforms developed with a mature vision will prevail, leading the way for others.
The EQIFI Solution
EQIFI and the use of its native token, EQX, will change DeFi as we know it by driving real-world adoption, partnered with a registered and licensed bank, pioneering the way forward for innovation, convenience, and security.
EQX and EQIFI will, in due time, recreate our legacy financial system, as it gives DeFi the upgrade it needs. As a “rising tide lifts all ships,” EQIFI raises the bar and the tide.
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Originally published at https://www.eqifi.com on September 13, 2021.