As you have noticed the Equalizer bridge is running low on liquidity on the Binance Smart Chain (BSC) side (BEP20 tokens), which means that Equalizer (EQZ) holders of Etherum ERC20 tokens want to move their assets to BSC. This creates a liquidity pressure on the BSC side, on the Equalizer bridge.
As the total amount of minted EQZ BEP20 is 1M tokens and it seems that the demand is bigger, we’ve concentrated our efforts to find a secure, transparent and safe solution to migrate tokens from Ethereum Chain to Binance Smart Chain, that can also be applied to any other new chain we will plan to transfer tokens to in the future.
The Equalizer ERC20 Smart Contract has a total fixed supply of 100M tokens and no possibility to mint more or to burn. That’s why we consider Ethereum as being the main chain of Equalizer and the accounting system for all the deployments on other chains.
To migrate tokens from Ethereum to other chains, we use the following logic:
- For the amount we mint on other chains (in this case BSC), we lock the same amount of EQZ ERC20 token on a secure multisig wallet smart contract on Ethereum.
- For the amount we burn on other chains (in this case BSC), we unlock the same amount of EQZ ERC20 tokens from the secure multisig wallet smart contract of Ethereum.
Assets locked in the secure ethereum multi-signature wallet are not in the circulating supply.
For transparency, the address of the secure multisig wallet smart contract is publicly available and any transaction to and from these addresses can be tracked here:
(Same contract address)
Using the method explained above, the Equalizer Team will transfer 100k ERC20 EQZ tokens from the Ecosystem Development Budget and lock them into ETH multi-signature wallet, while minting 100k BEP20 EQZ in BSC and provide this exact amount as liquidity in the BSC BEP20 Bridge Smart Contract.
After that, EQZ ERC20 holders can start using the Bridge and swap their ERC20 tokens to BEP20 tokens
In case the BEP20 liquidity on the bridge is again running low, the Equalizer team will repeat this process and ensure a new BEP20 amount available in the Bridge.
This is an intermediate solution before developing the final multi-chain bridging solution that will be able to mint and burn tokens in an automated way, each time when the users are transferring tokens between chains. This advanced solution requires proper architecture, security measures and audit.
We are going to implement and monitor the solution explained here, by the end of this week.
We want to highlight one more time that we put the security of the EQZ assets in the first place and we are implementing with due diligence all these processes, having the goal to ensure long-term sustainability for the project and for the token holders.
Equalizer is the first dedicated flash loan marketplace that can handle the rising demand for DeFi lending and borrowing. It sets itself apart by offering the lowest fees and transaction costs, a virtually unlimited choice of token vaults, high liquidity through yield farming, scalable, multi-chain infrastructure, and integration friendly.