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Equalizer Is Building the First Flash Loans Marketplace To Equalize the Decentralized Finance Market

Finance

ihodl.com 29 April 2021 23:00, UTC
  
Reading time: ~3 m

Flash Loans are a building block of the Decentralized Finance Market with more than $700 million dollars monthly. Flash Loans empowers traders to get profit out of many opportunities in the cryptocurrency market, like arbitrage, collateral swapping, portfolio rebalancing and liquidations. Anyone, anywhere in the world can borrow instantly and easily any amount, with no collateral needed, but only if the amount is returned to the vault in the same block. This guarantees the safety of the funds in the vault. Equalizer.Finance is the first dedicated platform that equalizes the decentralized markets, specially designed as a marketplace for flash loans, with scalable and multi-chain infrastructure.

What Are Flash Loans?

Flash Loans are a unique capability available only on the blockchain protocols and represent an uncollateralized loan option that has to be returned in the same block transaction.

Flash Loans enable anybody to borrow instantly and easily any amount, with no collateral needed, but only if that amount is returned to the vault within one transaction block.

If this does not happen, the whole transaction is reversed and undo the actions executed until that point. This guarantees the safety of the funds in the vaults.

Use-cases include arbitrage, collateral swapping, rebalance, liquidation and many more.

In that sense, flash lending is a revolutionary financial product unique to the decentralized finance world as it has no corresponding centralized finance product or service. It allows the borrower to take a loan, use it for profitable operations, and return it together with interest within the same blockchain transaction. Through its nature, flash lending adds more depth to the concept of democratized finance by allowing everybody to act as a significant player in the field for any given instance, using up to the total liquidity available on a platform.

Flash loans are risk-free for liquidity providers (lenders) and strengthens the concept of democratized finance as it allows the borrowers to use the entire available capital of the vaults. Hence, operations that were available only to a small group of entities with many funds become available to everyone.

What is Equalizer.Finance?

Equalizer.Finance is the first flash loans marketplace of Decentralized Finance, a dedicated platform that brings together liquidity providers and borrowers. On one side the platform incentivizes LPs for staking their funds in secure vaults, by receiving more tokens coming from the fees of the flash loans provided. Additionally, the LPs are automatically part of the Yield farming program, designed to stimulate long-term liquidity providers.

On the other side, borrowers are provided with a plethora of liquid pools (vaults) that will bring more advantages than any other competitor in the market: lower fees, a wider range of tokens, a minimum level of available liquidity and reliability in any market condition.

Equalizer offers many advantages over the popular do-it-all DeFi protocols and sets itself a class apart by offering scalable and multi-chain infrastructure, dedicated protocols and strong business model: By capitalizing on the advantages that our system offers, users are empowered to an unprecedented degree to seek opportunities and capitalize from operations such as:

  • Arbitrage.
  • Liquidations and self-liquidations.
  • Collateral swapping.
  • Flash minting.
  • Portfolio rebalances.
  • Loan refinancing.

Equalizer’s business model is based on a single core service: providing a secure and reliable platform for flash loans. This is bringing a lot of flexibility in adapting to changes in the evolving cryptocurrency market. By offering a tailor-made service needed to create a strong foundation, Equalizer aspires to become a solid building block of the DeFi market.


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