Flash loans are a completely new concept for the world of finance. However, they are becoming extremely popular in the decentralized finance space. Typically, a flash loan is a loan taken for a very short period of time from a decentralized lending platform to carry out specific tasks.
By definition, a decentralized finance ecosystem doesn’t rely on centralized entities to equalize the prices in different protocols. So, who takes care of this task? The answer is arbitrageurs! The arbitrageurs balance the decentralized markets and, of course, make a profit out of it. For engaging in profitable arbitrage trades, arbitrageurs need a dedicated flash loan platform that they can rely on. Here is where Equalizer comes into the picture.
“But there are already too many of these platforms!!”
If you’re aware of the recent developments in decentralized finance (DeFi), that may have been one of the few things you thought about Equalizer.
Well, come on, don’t be so harsh. We’d not have built a new DeFi platform just for the sake of it. And what you just thought… we agree to it, partially, yet we differ.
There are already many DeFi protocols that offer flash loans to individuals and entities. But how many protocols can you think of that you can categorize as a dedicated flash lending platform?
We did not create Equalizer to add to the crowd. We made Equalizer as a dedicated protocol and only one core service: flash loans.
The first account of lending and borrowing date back to the Mesopotamian region in 2,000 BCE. Since then, it has burgeoned into a multi-trillion dollar industry — a major part of our financial landscape.
Since whenever the concept came into being, people have borrowed from various sources and for various reasons. But it is today that we have the opportunity to create a completely fair lending ecosystem using blockchain and cryptocurrency. An ecosystem without intermediaries, without any falsifications, without long waiting times, or high fees.
In 2019, the global peer-to-peer lending market accounted for $67.93 billion, and it is projected to reach $558.91 billion by 2027. In the current P2P scenario, there’s a lack of accountability, security, and transparency alongside a segregated market failing many customers worldwide. Apparently, though, the demand for P2P lending is on the rise. And blockchain, crypto, and DeFi are here to serve this growth by creating a fairer P2P lending and borrowing space.
In this big picture, a special type of loan, called flash loan, is possible only in the blockchain space. It is a type of loan that you can have for a few seconds, and it can be any amount you want without requiring any collateral. This is something unique, right? For the first time in the history of humankind, we have the chance to get a loan for free…
But so far, we only have DeFi protocols that offer flash loans as a side product. At Equalizer, we believe flash loans create a big enough sector with an extremely high demand to have a dedicated decentralized finance protocol.
That’s our reason. We are here to fill a gap that is there but may not be visible due to the lack of focus.
With Equalizer, we intend to give people a service that is tailored to provide one core capability — Flash Loans — and do it perfectly… better than so many of the “do-it-all” DeFi protocols. We are creating Equalizer with a vision to make it a core ecosystem player that can generate value for all stakeholders.
Equalizer is that much-needed building block of DeFi that equalizes and balances the decentralized market while making it more resilient. It will also act as a tool that can be used and integrated with other DeFi products and services.
While we believe that’s enough a reason to create a DeFi protocol that specifically focuses on one large sector of finance, we know that you as a user need more than that to use Equalizer. So, let’s dive deeper.
Why Would People Use Equalizer?
We’re not a fan of Facebook and Instagram but because it has penetrated so deep into our lives (like, really) we think it would serve as the best example. When Instagram launched, it was still possible to share photos and videos on Facebook. And yet, you see, how a large portion of Facebook users moved to Instagram. Why?
Facebook serves as a platform where you could share a variety of formats of content. Instagram, however, puts photos and videos at the forefront. That is why people were attracted to Instagram like bees to flowers. Instagram leveraged people’s attraction toward visually appealing content. Yet, Facebook continues to usher.
That’s what Equalizer aims to do. It does not intend to push other DeFi protocols out of business. Equalizer leverages one specific need of the decentralized finance ecosystem and caters to that need only, while other protocols continue to serve other needs. And because Equalizer offers only one core service, it has a greater chance of building more trust in its protocol, by being more agile and flexible to adapt to market conditions.
Additionally, by serving as a dedicated flash lending protocol, Equalizer has a wide range of benefits over other protocols that offer it as a side service. Let’s take a look.
- Dynamic Fees: Equalizer’s business model focuses only to provide flash loans. All the fees are dictated by an algorithm that considers market forces such as the number of transactions, interactions, and by the community through governance voting. This allows Equalizer to keep lending fees as low as possible so it doesn’t cut out into the profits, but also high enough to be attractive for liquidity providers. The fees can be fine-tuned based on market conditions and based on governance decisions.
- Unique Incentive Scheme: Equalizer offers continuous incentives to liquidity providers so there’s enough liquidity at all times in each token’s vault.
- High Scalability and Throughput: Equalizer is built to have a scalable infrastructure that can handle the rising demand for decentralized flash lending and borrowing without any lag in transactions.
- Interoperable: The vision of decentralized finance to offer financial services to everyone around the globe remains unfulfilled without applications interoperating across blockchains. Equalizer is built, by design, to operate across multiple chains to maximize the number of people who can benefit from it.
- Compatible with all Tokens: Unlike the many other protocols, Equalizer aims to desegregate the lending market by allowing any token to be listed and offered as a flash loan on the protocol. This allows better inclusivity, more flexibility to the users, and profit from new market opportunities untapped before.
- Multi-Chain and Cross-Chain capabilities. Equalizer follows the market trends and has the ambition to launch the platform on any compatible chain that can generate volume: main Ethereum or L2 chains, Binance Smart Chain, Polkadot, etc.
The Equalizer Team
Equalizer is backed by some of the most eminent people in the blockchain and crypto space, people who believe that DeFi is the future of finance.
Iulian Nita, Ph.D. (Role: Project Lead) He is a certified Blockchain Solution Architect for the European Blockchain Services Infrastructure, an ambitious pan-European Network that delivers cross-border public services. His expertise includes the designing and implementation of complex blockchain projects based on Ethereum, Fabric, Steem, Tezos, Algorand and significant scientific work as a blockchain researcher on new and innovative blockchain protocols. He is also a successful entrepreneur and a university lecturer for embedded systems at one of the top technical universities.
Alen Horvat, Ph,D., (Role: Lead Architect) He is a senior researcher and blockchain architect, with more than five years of experience in private blockchain networks, distributed microservices architectures, distributed storage solutions, consensus protocols, cryptography and self-sovereign identity. He is an ambitious and well-organized architect, specialized in delivering large-scale, complex systems. He is leading the research and development activities with a clear focus on decentralisation and distribution, ensuring the scalability of any blockchain-based solution. He has been awarded the Dean’s Commendation for Academic Excellence.
Vlad Ionut Stefan (Role: Project Manager) He has extensive experience working with various successful crypto and blockchain projects. In all his years as a professional, Vlad has collaborated with Hyve and 45 other projects. His role in the project is to build the go-to market strategy and to implement the business development plan. With his expertise in crypto-economics he has contributed to the successful launch of many relevant projects in the crypto space.
Jesus Pena Garcia (Role: Business Development). He is a successful entrepreneur in the Luxembourgish blockchain ecosystem, involved in the bootstrapping of many successful and innovative projects. He will be in charge of all operational business activities. Jesus is a visionary and true believer in the innovation brought by blockchain technology. He has extensive experience as COO for innovative startups and deep digital marketing background with a focus on clever go-to-market strategies.
Pablo Staiano (Role: Cybersecurity and DevOps) He is a Senior Systems Engineer with more than a decade of working experience with managing large and complex IT environments. Being an active player in various DLT projects using Graphene DPoS and Ethereum PoA consensus, he is the advocate of blockchain principles in regards to privacy and decentralization. He is a Red Hat Certified Engineer, Cybersecurity and DevOps expert. He is leading the infrastructure component of our solution, ensuring the scalability, availability and security of the Equalizer Platform.
Stefan-Adrian Bancu (Role: Lead Developer) He is an expert in architecture both traditional and blockchain projects including DeFi. Skilled CTO, he brings a lot of experience working from 2017 within the Ethereum ecosystem. Stefan is an experienced Senior Software Developer and Blockchain Advocate. With more than 15 years of experience in programming, Sfefan is a full-stack developer with experience in designing and developing complex smart contract applications. He is also a certified SCRUM Master and Product Owner, applying the agile framework in his work.
The Way Forward
We see the future in two primary shades. There are going to be opportunities and there are going to be challenging. We will seize the opportunities to make Equalizer one of the primary players in DeFi flash lending and we will overcome the challenges and thrive through tough times. Hereafter, we have only one goal: to ensure readily available flash lending services for all. And we will give our best to Equalizer and its community to achieve that.
Thank you, everyone, for being part of the Equalizer’s community and supporting us!
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