Introduction

A brief introduction to Equilibria and its key-concepts.

Equilibria Finance logotype

Overview

The finance market is always evolving, and users interfacing with finance are growing day by day. The need for investors to cut out intermediaries and manage their financial resources independently, quickly, and securely is growing day by day, so DeFi is starting to play a crucial role and being considered by institutions, large venture capitalists, and relevant investors. The DeFi industry is populated by several types of protocols, each of which allows users to invest and manage their resources differently. One of the most commonly used categories by users is the Lending protocol: this allows for the conjunction of the need for users who want to earn passive interest on their capital (lenders) with those who want to increase their investment capacity without affecting their own capital (borrowers).

In this setting we want to introduce Equilibria. The name comes from Latin, and is meant to represent the concept of stability. We have envisioned the Equilibria protocol as a safe place for borrowers and lenders to conduct their transactions (based on the already widely proven architectural approach of the famous lending protocol called Compound) and, in the long run, to make it an all-in-one platform, where users can borrow money and generate earnings from it in the same place and according to different risk profiles. The workflow of the entire platform, when fully functional, can be summarized as follows:

Structure of equilibria

Key-Features

Equilibria platform aims to be the first and leading lending protocol of its kind. In order to properly achieve this goal, the team behind Equilibria wants to deliver a platform that goes beyond a simple well-developed platform. Our goal is to build something trustable and enjoyable for every kind of DeFi user and/or Hedera enthusiast. That's why the Key-Concept where we want to start for the platform development are the following:

1. Safeness: We aim to ensure user security in two ways: by providing a secure protocol architecture for user funds and minimizing the risk of liquidation. The first is achieved by utilizing a well-known architecture like Compound V2, followed by improvements and a Smart Contract audit. The second is accomplished by implementing a Machine Learning algorithm capable of predicting the probability of a loan being subject to liquidation.

2. Engagement: We strive to continuously improve platform engagement by providing an unparalleled UX and embracing new technologies such as Machine Learning and AI. Additionally, by promoting AMA (Ask Me Anything) sessions, building governance mechanisms, and continuously interacting with the community, we can ensure the achievement of our goal.

3. Data-Driven: The team's deep knowledge in Data Scince will allow a full Data-Driven approach, ensuring users a more transparent platform through an Analytics Dashboard and a safer market through the implementation on an arbitrary and permissionless algorithm that will allow users to minimize liquidations risks events.