Equilibrium, a major multi-chain DeFi framework, has raised the EOSDT (decentralized EOS stablecoin) circulation cap from $70 million to $170 million, as the DeFi industry continues to grow; the need for liquidity in cryptocurrencies is steadily increasing.
On May 1, it has been reported that Equilibrium has expanded the supply of EOSDT, as a result of integrating Bitcoin-powered liquidity.
However, this push became possible through EOSDT’s integration with pTokens, cross-chain DeFi liquidity network, which enabled Bitcoin collateralization through pTokens’s BTC-pegged token, pBTC.
Bitcoin is the biggest cryptocurrency by market capitalization, as it is one of the most liquid crypto assets with a trading volume of over $52 billion as of press time. By integrating pBTC, an Ethereum, and EOS-compatible token pegged 1:1 to Bitcoin, Equilibrium unlocks massive new liquidity for the EOS ecosystem while driving interest in BTC-based DeFi.
Alex Melikhov, the CEO and founder of Equilibrium, said:
“Liquidity is one of the first challenges that a DeFi framework must overcome, so Bitcoin compatibility is a major achievement for securing Equilibrium’s future. This integration makes it possible for billions of dollars in fresh liquidity to make its way to EOS-based decentralized finance.”
Likewise, Thomas Bertani, the founder of the development team behind pTokens, Provable Things, said:
“With Bitcoin now providing additional collateral for EOSDT, we unite the world’s traditional reserve currency, the U.S. dollar, with the most used and popularised digital asset to date. This marriage between fiat and digital currencies creates layers of liquidity and a unique collateral base that traditional currencies simply cannot provide.”
As per the report, Equilibrium says that EOSDT smart contracts hold more than $10 million EOS collateral, as this is claimed to be the biggest amount among all EOS-based decentralized applications so far.
Thus, Melikhov said that the annual percentage rate of EOSDT-driven liquidity against the collateral of volatile crypto assets accounts for 1%.