Review on EOSDT by Aman Arora
EOSDT has a potential to become relaible stablecoin for Defi Protocols
EOSDY is a stable coin build on EOS network and it is pegged with U.S Dollar with 1:1 ratio. EOSDT built with the purpose of lending and borrowing Stable coins by colletralizing volatile cryptos and get EOSDT. Eosdt works as internal Cross Chain bridge that allows swapping stablecoins against volatile and provide stablecoin liquidity from one chain to another.
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EOSDT platform launched with an idea purposely to work with DEFI ecosystem. While as we all are aware that market volitality is inevitable and we all have to be patient enough to make full use of bull cycle but we also have needs and needs funds for day to day activities.
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In such times, EOSDT fullfill the needs by providing you lending facility by collateralizing your tokens like EOS or Eth. We simply need to collateralize 130% of value to borrow( to get 100 dollars we need 130 USD equivalent of crypto as collateral )as which is way lower on any other lending platform.
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EOSDT is good in terms of looking for equilibrium price algorithm and mentioned in their roadmap that system is looking for additional capital to make sure users get their funds in full even if their collateral falls below 100 percent. This assures that system is fair in dealing with Risk involve in lending and borrowing facility even if users loss the equilibrium price of the EOSDT they get. Users are also charged 1% APR when they borrow stablecoin for the period they use EOSDT which is too competitive and lowest in DEFI ecosystem as DAI charges more than 5% APR.
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EOSDT also working on decentralized governance model which transfer the rights to the EOSDT holders to decide the implementation of theories.Listed on Bancor and Bittrex but with Very low volume but Mostly volume comes from Bitcoin(com) with btc,bch & USDT crosses. Market Cap is still very low as supply is 5.3 Million as well as its market cap which is $5.3 million.
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I see project as potential and an idea to connect two chains against market volitality but potential and growth will be seamless if they manage to offer 100% equilibrium price if value of colletral falls below the value borrowed. Looking forward for updates from the community and keep it on watchlist
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Pros
- Eosdt stablecoin provide borrowing facility against market volitality by lending and is pegged with US dollar
- Lowest APR as compare to other stablecoins which makes it reliable to borrow
Cons
- Project is relatively new and need to meet requirements of offering equilibrium price as complete security of funds to borrowers
- Low Volume at exchanges is a concern for the community and put a question mark on project
