Despite the massive increase in size, DeFi is still in its relative infancy. The ability for decentralized protocols to deliver complex financial instruments without the need for a centralized body is something that will truly revolutionize legacy finance. Equalizer is one such protocol that seeks to deliver one more solution for investors to utilize their funds in the DeFi market.
Equalizer is the first platform dedicated exclusively to granting flash loans to its users. Equalizer gives its users a virtually unlimited choice of token vaults to choose from. The low fee service is delivered with high available liquidity based on a yield farming model that allows investors to stake their own tokens. Equalizer has a multi chain and cross chain capabilities to ensure that it remains at the cutting edge as DeFi develops. With $700 million worth of monthly flash loans already supplied in DeFi, this is a huge market. This protocol gives investors access to arbitrage, collateral swapping, rebalance of liquidation and many more functions that all serve to equalize the decentralized market.
Today we sat down with Iulian Nita, CEO of Equalizer Finance, to talk about Equalizer and the role it can play in the ever developing DeFi world.
1.Can you please talk us through exactly what a flash loan is, and how do flash loans help unlock value in the DeFi market?
Flash Loans are a unique capability available only on blockchain protocols and represent an uncollateralized loan option that has to be returned in the same transaction.
Flash Loans enable anyone, anywhere in the world, to borrow instantly and easily any amount, with no collateral needed, but only if that amount is returned to the vault within the same block. If this does not happen, the whole transaction is reversed, and all the operations executed up to that point are undone. This guarantees the safety of the funds in the vaults.
Flash loan use-cases include arbitrage, collateral swapping, rebalance, liquidation, and many others.
The flash loan market has exponentially increased over the last 12 months, reaching billion dollars volume last month.
2. Equalizer is the first protocol that’s primarily geared towards supplying flash loans. What advantages does having flash loans as the primary function give over protocol that supply it as a side function?
As the flash loan monthly volume is continuously increasing, now exceeding $1 Billion monthly, it becomes obvious that this is a need that can no longer be ignored. Building a dedicated flash loan marketplace with a full set of specialized features and benefits contributes to the proper development of the Defi market. Comparing to other protocols in the market, Equalizer comes with clear advantages:
We have a dedicated business model specialized in offering an efficient flash loan service.
We have the flexibility to quickly adapt to all market conditions simply by fine tuning the platform’s parameters. For example, we can easily expand to new chains with our multi-chain architecture, we can add or remove vaults and tokens, we can change our fees, change the capacity of the vaults. We have a dedicated yield farming program that will ensure the efficient use of all the available liquidity to generate concentrated profitability.
We are the first and only one platform so far that respects the new Flash Loan EIP 3156. We have the lowest gas cost per transaction in the market. We have the lowest flash loan fee (no interest rate, only a percentage fee). Our Liquidity Providers will have no exposure to impermanent loss. We also have professional technical support and extensive documentation that will target traders and arbitrageurs, with the goal to create a vibrant community boosting the usage of the platform
From a technical point of view, Equalizer comes with clear advantages in comparison with our main competitors:
3. This project talks a lot about equalizing the DeFi market. Can you tell us a little more about what that entails for Equalizer?
In the DeFi market, operations like arbitrage, liquidations, collateral swapping, and portfolio rebalancing are no longer just tricks for traders to secure a quick win, they are a need. This is the way a decentralized market works. Having no middle man (or third party), The DeFi market fully relies on traders and arbitrageurs to keep a balance.
For example, crypto-assets can be listed on multiple decentralized exchanges as part of different pairs. Each time a trade takes place on one of the exchanges and one of the pairs it creates a difference in price compared with other exchanges and pairs. This is what we call an arbitrage opportunity. When the trader has no liquidity in his wallet to execute the arbitrage opportunity, he borrows the needed amount from a flash loan vault for a few seconds, executes the arbitrage trade, gets the profit, and pays back the borrowed amount.
The result of this arbitrage trade is that the prices between different DEXes and pairs will again be equalized, waiting for a new trade to happen. That’s why we see the Equalizer Platform as a fundamental tool of the DeFi market, that enables traders to equalize the price of different crypto assets, between different Defi Protocols.
4. How do you see DeFi developing over the coming year?
I have been working in the fintech ecosystem for more than 5 years, enjoying each moment and discovering new challenges each day. I have chosen to get involved in the DeFi market because I believe in its disruptive potential. I believe that DeFi is the first real use case of blockchain technology and smart contracts. The DeFi market is here to stay and we are just at the beginning of an incredible journey.
As I am a strong believer in this powerful technology, I decided to completely shift my professional interest from the classical financial system towards decentralized finance to be part of something that will have a huge social and economic impact. Looking at market evolution, the trend is becoming clear and I believe that this market will continue exponentially. We are going to see an explosion of new protocols and innovative products. When all these protocols are integrated and mature enough, there is no way back, DeFi will replace CeFi.
I have started to realize that life can be better without banks and financial institutions that play the role of intermediaries. Now, they can be easily replaced by secure smart contracts. We are becoming a bankless nation! We are building the decentralized revolution and a huge shift is inevitable.
5. What do you believe is the biggest value Equalizer can bring as part of the PAID Ecosystem?
For me it’s clear that the DeFi market can evolve only by developing ecosystems that can be integrated. Building DeFi protocols that can interact to generate business value is the key to a successful development. The Equalizer platform has a clear focus on integration with other platforms and developing standard interfaces that are easy to integrate with.
All the users and dAPPs of the PAID Ecosystem can integrate and interact with the Equalizer Platform to boost their trading volume and to enable the flash loan operations on their respective native token. As explained above, this will increase the trading volume on different DEXs and at the same time will keep the asset’s price equalized.
Additionally, holders of the tokens that are part of the PAID Ecosystem can stake their assets in the liquidity pools (eVaults) listed on the Equalizer Marketplace and get passive income from fees generated by the flash loan services.
6. What future synergies do you see possible for Equalizer and PAID Network?
I have understood that for a successful DeFi project, an important ingredient is to choose the right partners. We are glad and grateful at the same time to have partners like PAID Network working closely with us. Looking at the parallel development of all the projects that are members of the PAID Network, it’s obvious we all share the same passion and vision — to build a reliable DeFi ecosystem. This creates strong synergies between us and contributes to the success of each project and to the entire network.
It’s clear that what we are building here together is a network of networks, with each project building targeted communities and features. When we manage to interconnect all of them we will become an unstoppable power. From my point of view the best synergy we can build in the feature is the interoperability of all the dAPPs in the PAID Ecosystem.
7. Please let the PAID community know what latest developments are happening with Equalizer.
After an intensive development period we are ready to publicly release the Equalizer Marketplace on main-net, starting with Ethereum and BSC with others coming soon.
The development is done, the bugs are fixed, and the audit is complete. All the components are ready for a secure and successful launch. We have now finalized the last testing scenarios and you are kindly invited to give it a try and provide valuable feedback.
The integration of Flash loans into the PAID Ecosystem is a great opportunity for arbitrageurs to engage in balancing the DeFi markets and to make crypto while doing it. It is a great example of the mutual beneficial nature of engaging in DeFi. As DeFi continues its incredible growth this is a project we’ll be delighted to have as part of PAID. We can’t wait to see how Equalizer develops to become a key part of the DeFi ecosystem and of our own “network of networks”.
Thanks very much to Julian for joining us and providing such insight into the DeFi sphere.
- If you want to learn more about Equalizer join the discord server HERE.
- Users on the Discord can go to the #testing channel and ask for test tokens. These can then be used to test out the app HERE.
- Equalizer is still in its early stages of development so if you encounter any bugs we’d really appreciate it if you could report them HERE.
PAID Network seeks to redefine the current business contract, litigation, and settlement processes by providing a simple, attorney-free, and cost-friendly DApp for users and businesses to ensure they #GetPAID wherever they are in the world.
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