Equilibrium is a substrate-based parachain that introduces a money market for DotSama ecosystem and provides a multiple-collateral stable unit of account (stablecoin) pegged to USD. Equilibrium utilizes novel approaches to on-chain pricing (interest rate calculation) and risk calculations (determination of the solvency of the entire system), which distinguishes Equilibrium in several ways from other well-known DeFi projects:

• There are no arbitrary governance-set interest rates, they are determined by a borrower’s portfolio, borrower debt, overall system liquidity, and market dynamics and risks.

• There are no arbitrarily set LTV requirements. This system makes sure every position remains solvent at a 100% collateralization ratio.

• There are no arbitrarily set liquidation penalties and no hidden fees when borrowers default.

• By design there are 3 sides in the system: lenders supply liquidity and earn interest, borrowers supply collateral and borrow or trade on margin, insurers supply liquidity and guard system solvency while earning interest from borrowers.

• The architecture of our asset balances module supports: asset lending, a fractional reserve system and synthetic asset creation, a cross-chain order book based DEX with margin trading.

Equilibrium to introduce a broad line of DeFi products within one blockchain practically out of the box.