Review on EOSDT by Benaiah A. Akinlade
EOSDT: Providing equilibrium between fiats and cryptocurrencies through the Equilibrium framework
Stablecoins are set up to perform one dual function: to control the volatility of cryptocurrencies and at the same time serves the function of cryptocurrencies through trading.
EOSDT is a dollar-pegged stablecoin that performs the function of reducing volatility and adding extra liquidity to the crypto market. It can be held on up to 13 wallets and transacted on close to 7 crypto exchanges. It is a token transparently backed by “Equlibrium Company” framework, a decentralized finance group as well as a software service with a community oriented system that creates an enabling environment for developing decentralized stablecoins and financial projects to be created. The company manages tokens such as NUT (Native Utility Token), EQ token, and EOSDT. The company is partnered with Binance and eosfinex as part of the oversight team for its projects.
EOSDT cryptocurrency works hand in hand with a real token (USD) issuance and allows you can stake your NUT, EOS, and EOSDT tokens for up to 11% APY earnings. All rewards from staking are directly distributed to the community without commissions. This means that Equilibrium does not make profits on its Staking pool. You can also earn more rewards when you vote for your most preferred Block Producers using your NUT.
As much as I believe that stablecoins are a way forward in reducing the high volatile nature of cryptocurrencies. I hope EOSDT has not come a little too late as there are a number of stablecoins already established in the cryptospace, unless it can provide services that are more endearing to investors.
Pros
- The token is very low in volatility
- The token can be held on several crypto wallets and also available on some crypto exchanges
- It allows you to hold the real value of the USD in your crypto token
- The Equilibrium framework charges very low fees and provides fast completion of transactions of EOSDT
- You can stake your EOSDT token to earn rewards
- As a community driven project, you are entitled to vote on decisions that affect the community
Cons
- There is tough competition from other USD-pegged stablecoins that provide similar or probably better services
