There is no room for doubt that the crypto world has grown exponentially but there are still gaps to be filled. People have got used to limited capabilities of accessing the full potential of their digital assets. For years, people have been tackling high fees, outdated technology, over-collateralization, low liquidity, and many problems inhibiting the growth of their funds.
However, people might not have to suffer these problems for too long as several platforms such as EQIFI are working to bring great functionality to the digital financial sector. EQIFI is a decentralized protocol that is setting new standards by establishing trustless transactions and promoting real-world promotion.
EQIFI is a product of EQIBank, one of the world’s leading innovative banks started in 2015. It is recognized as one of the top ten Digital Banks globally because of its constant efforts to offer more financial services on a global scale. EQIFI aims to leverage DeFi technology to provide improved financial services to the masses.
Considering several problems that we face in the traditional banking system, such as inefficient methods, obsolete pricing models, expensive cash handling, etc., we need an improved banking system more than ever. DeFi has the capability to provide a banking system that can tackle all the limitations of the existing banking system and has unlimited potential.
EQIFI aims to achieve such functionality and provide financial services such as borrowing, lending, and investing for Ethereum, ERC-20 tokens, Stablecoins, etc. It also accounts for the need to include fiat currencies in the digital space, as most of the population still relies on fiat currencies for day-to-day needs. For this purpose, EQIFI offers various products such as:
EQIFI Fixed Rate Products
EQIFI fixed rate products settle on a specific date in the future and are pooled loans at a fixed interest rate. For collateral, users can choose between wBTC, ETH, Stablecoins, or select fiat currencies (converted into stablecoins). The fixed interest rate is set algorithmically using a smart contract.
EQIFI Variable Rate Products
EQIFI variable rate products include dynamic interest or borrow rates set using algorithmic calculations. It makes the marketplace responsive and flexible to any change across the network. These changes are usually brought on by fluctuations in user activity, demand, or increased level of borrowing. If the demand rises, the interest rates will simultaneously rise, which will attract more lenders to participate.
EQIFI Interest Rates Swaps
EQIFI Interest Rates Swaps are a type of DeFi forward contract, where users can swap one stream of future interest payments with another. This swap is conducted on the value of the principal amount. Usually, this swap involves an exchange between a fixed-rate interest and a variable rate to leverage the fluctuations in the interest rates. This way, users can switch between different products to maximize their returns.
EQIFI yield aggregator automatically aggregates all external yield farming products making the process quicker and simpler. This product can help both experienced and beginner users by automatically assigning capital between various liquidity pools to maximize profit.
The rigidity of the traditional financial world makes it difficult for users to maximize their profits. Also, the system uses outdated technology and charges higher fees, which makes it less than optimal. However, as there were no smart alternatives before DeFi came into play, users were forced to use the existing financial services the best way possible.
Blockchain technology, when combined with DeFi implementation, proves to be an effective alternative. DeFi has revolutionized the financial capabilities of the crypto world. However, the technology is still in a nascent stage, and the implementation is limited. With platforms such as EQIFI working round the clock to bring better applications and products in the decentralized finance world, the future’s looking bright.