Equilibrium’s decentralized cross-chain financial lending protocol is set to transfer its stablecoin pegged to the US dollar to Moonbeam, Polkadot’s project to build an Ethereum-like blockchain.

Moonbeam-based DeFi projects will be able to use Equilibrium stablecoin as if it were integrated into the blockchain. This includes decentralized exchanges, one-time lending protocols, and other building blocks of DeFi.

Moonbeam can be described as the “Ethereum on Polkadot” project. It uses the same smart contract framework as Ethereum, with the Ethereum virtual machine and the same deal for accounts and wallets. As a result, Moonbeam supports solvency smart contracts and allows developers and users to migrate their projects and portfolios with minimal changes.

At the same time, Moonbeam is an umbrella, an analog of the Bolcadot coral reefs. This allows other parachutes to connect to the moonbeam with minimal effort, thanks to the cross connectivity provided by Polkadot Relay Chain – essentially equivalent to Ethereum 2.0 Beacon Chain.

This compound will be used by Equilibrium to transfer Ethereum Enable Token on Wednesday. Ethereum-based DeFi protocols are expected to bring its projects to Moonbeam, thus linking the balance directly to the broader DeFi ecosystem. One of these integrations is SushiSwap, which explores the potential to create a relevant protocol on Moonbeam. Alexei Milikov, CEO of Equilibrium, commented to Cointelegraph about the integration:

“We think it is important to show cooperation between specialized parachutes, as the quantity can be more than the number of parts for both sides.”
Equilibrium is an online money market protocol that makes it possible to provide the security for creating a decentralized stack currency – similar to MakerDAO. Equilibrium was originally built on EOS, and transferred the core of the protocol to Polkadot over the summer. In addition to leveraging Polkadot’s interoperability, Equilibrium places great emphasis on the care wrap mechanism. Unlike other similar protocols, the liquidation is controlled by a permanent class of liquidity providers who receive a portion of the platform’s revenue. This provides a basic level of repayment regardless of debt repayment, which simply becomes an additional source of income.

The launch will follow the anticipated auctions for Polkadot parachutes, which are expected to take place in early 2021. Milikov said their plans are based on getting both the moonbeam path and the equilibrium path, which is not clear. However, he believes there is enough space for all the large projects currently being built on Polkadot to be parachuted into landing.

Source: CoinTelegraph