Genshiro — Cross-chain DeFi one-stop-shop
If you are looking for a one-stop-shop DeFi project, Genshiro is one of the best picks. As a complex decentralized finance platform built on the Kusama blockchain, Genshiro consolidates various functions and products of the DeFi world as lending, synthetic assets, margin trading, and decentralized exchanges (DEX) into a single platform.
Besides the above-mentioned functions, Genshiro enables cross-chain interoperability by bridging blockchain networks aiming at the creation of opportunities for multi-currency DeFi tools. One of the short-term goals of the platform is to test and subsequently incorporate new experimental derivatives and products within its ecosystem of smart contracts. This ecosystem is fully collateralized leaving no room for over-liquidation.
Speaking of innovation, the Genshiro team is about to release a similar platform called Equilibrium on the Polkadot network. Genshiro aims to be Equilibrium’s “canary network”. In other words, the new code will be shipped and tested on Genshiro first before going live on Equilibrium.
Equilibrium is a cross-chain DeFi super-app combining various features from the money market, — spot market with margin trading is just a hint of a whole scope of opportunities.
One interesting fact is that Genshiros founder and CEO Alex Melikhov, an engineering and applied mathematics expert who, prior to his role in Genshiro, founded the cryptocurrency exchange Changelly in 2016.
1. How it works: Features of the Equilibrium Genshiro Platform
The following flowchart represents the business processes behind the system for all stakeholders.
There are lots of crypto asset transactions available under Genshiro. This includes tokens, stablecoins, or synthetic assets like financial derivatives. There are four primary functions in the Genshiro ecosystem — earning, lending, bailouts, and borrowing.
Earning
The main focus of the Equilibrium/Genshiro platform is to provide a risk-free earning function. By using that, you can secure loans in the system and receive rewards in GENS at the same time. It is provided by the system that allows lock tokens into smart contracts that use it as a connecting portal to other blockchains. It has to be however stated that certain caution is in order. It is not recommended to use all your crypto assets for staking as the lock system might not allow you to withdraw the funds at the time you need them. Therefore use only a reasonable amount of crypto in order to diversify and protect your position.
Lending
Apart from earning function, the Equilibrium/Genshiro platform enables users to lend out part of their assets to others. But there is an essential difference in comparison with other DeFi platforms. Whereas these involve depletion of the assets being borrowed causing the inability of lenders to leave at their will during such depletion, the Equilibrium/Genshiro platform provides a system that separates the concept of lenders and bailsmen.
Moreover, the platform has put in place measures to provide incentives to market participants and make sure that the liquidity of any given asset isn’t scarce.
Bailouts
Rescuing from financial distress is the main goal of bailouts. Bailsmen unite under one liquidity pool sharing both risks and losses. In a system based on highly leveraged borrowing are bailouts crucial and help the sustainability and growth of the DeFi community. The system works on a logic of partial repayment; in other words, it allows a bailsman to withdraw funds from the bailout pool only after repaying a respective fraction of the accumulated debt.
Borrowing
Crypto assets are connected to various risks. One to be mentioned is volatility. Speaking of borrowing, there is a need for additional collateral and fees. Equilibrium Genshiro platform gives borrowers an opportunity to supply different crypto assets as their collateral through the cross-chain wrapping.
Now instead of treating each crypto collateral as an individual unit like other DeFi platforms, borrowers are allowed to pay a nominal fee based on the ratio of their collateral and other associated risks.
2. Key features that differentiate Genshiro from its competitors
There are a few key features, that differentiate Genshiro from other DeFi platforms.
1. Very low minimum collateralization ratio
100% — as opposed to the industry average of about 300%, with Maker DAO being the notable exception at 150%.
2. Unique and innovative governance model
Ability to stake GENS tokens in order to propose and vote on new system parameters. The weight of votes is dependent on the duration of earning function. Using the rule of thumb, the longer a user’s fund has been staked, the more weight their vote will carry.
3. Separation of different assets from different chains
The platform can go beyond the limits of the Ethereum blockchain. It can be achieved by adding tokens from the Polkadot ecosystem and even from other blockchains. Consequently, transactions no longer need to be bounded to ERC-20 tokens like other DeFi platforms, but trading pairs can now have access to other blockchains.
4. Improved Speed and Low Transaction Rates
The very infamous situation typical on Ethereum blockchain where the fees of the withdrawal are higher than the amount of withdrawing assets are finally overcome. Equilibrium Genshiro platform thanks to the Polkadot technology achieves much faster decision making than the Ethereum blockchain.
3. Tokenomics: Economy setup for Genshiros (GENS, Kusama-based tokens)
GENS is a multipurpose token used by the Genshiro ecosystem, which serves within those mentioned component roles:
- a governance token that enforces governance decisions via referenda
- collators rewards for running blockchain nodes and performing parallel (e.g off-chain) work
- transaction fees paid by users
- interest fees paid by borrowers
- rewards for liquidity providing
- bailout and collateral liquidity in Kusama-based liquidity pools once tokens obtain value.
Token supply and allocation
The total supply of GENS tokens is 1.2 billion. Distribution of GENS to existing EQ token holders pro-rata their EQ stakes was done via lockdrop. With currently 45% of all EQ token supply distributed (including vestings, PLO phase 1, and strategic investors), the corresponding GENS allocation will look approximately the following way:
4. How to Get the Most Out of Your GENS Tokens
Being a full-fledged DeFi one-stop-shop, Genshiro is offering multiple ways of usage for DeFi-savvy users. Its money market is already active. There is however more to come in the future. There is going to be, as is planned, launched a spot market with up to 20x leverage and a new farming mechanic that will let users get more liquidity out of their GENS.
The platform offers various unique opportunities for GENS token holders that are worth mentioning here.
Liquidity farming
The more GENS tokens you hold inside the system, the higher your liquidity farming rewards are, with the potential to grow as much as 100%.
Liquidity farming is the best deal for long-term GENS holders with most of their portfolio in GENS.
Collateral
Users can use GENS as collateral to borrow any asset available on the platform. If you need stablecoins, go borrow them for use in the blockchain of your choice!
Using GENS as collateral is the best deal for any user willing to raise liquidity against GENS collateral.
Crowdloans
This is possibly one of the most interesting usability. Users may borrow DOT or KSM using their GENS as collateral, then further use that borrowed liquidity to participate in Polkadot and Kusama auctions, leveraging their exposure to the ecosystem projects.
Using crowdloans is the best deal for any user willing to take part in Polkadot and Kusama crowdloans; those who opt for loaning DOT / KSM instead of buying.
PancakeSwap / Sushiswap
When Genshiro appears on the marketplace, put GENS there and get Liquidity Pool tokens that indicate your ownership. Afterward, you can earn from using them on the platform.
This leads to two sources of income:
- pancake commissions
- liquidity pool tokens (invest in Genshiro and earn the interest rate and farming rewards)
Using PancageSwap or Sushiswap is for advanced DeFi users.
Triple composite use case
For example, you might borrow EQD stablecoins using your GENS as collateral, then put those stablecoins into the Epsilon automated market maker and receive Liquidity Pool tokens in return. You can put those Liquidity Pool tokens into the Genshiro money market to earn staking and farming rewards on your liquidity. In the end, you will earn rewards on your Genshiro collateral, you will earn rewards on your Liquidity Pool tokens, and you will earn fees on your EQD liquidity inside the automated market maker as well.
Tripple composite usecase is for advanced DeFi users, that like combining maximizing profits and avoiding risks of various different platforms at the same time. Experienced Genshiro users can make a maximum income of their GENS.
Conclusion
Genshiro is the complex DeFi platform built on Kusama, that consolidates various functions and DeFi products. You can use a decentralized exchange of tokens, lending, borrowing, use synthetic assets, and margin trading in a one-stop-shop platform.
With the momentum of the Dotsama ecosystem, Genshiro could serve many different usecases for a different types of users from beginners to total DeFi degens!
The cross-chain interoperability of Genshiro multiplied by the growing multiverse of Kusama and Polkadot, find your own utility in the Genshiro DeFi platform for yourself, and benefit from this amazing project. You won't regret that!
Consider supporting us by the nomination of your tokens to Kusama or Polkadot validator going by the POLKADOTTERS name.
