Genshiro — Cross-chain DeFi one-stop-shop

1. How it works: Features of the Equilibrium Genshiro Platform

The following flowchart represents the business processes behind the system for all stakeholders.

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.

Earning function, source: docs.genshiro.io

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.

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.

Bailsman mechanism, source

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.

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:

GENS token allocation, source

4. How to Get the Most Out of Your GENS Tokens

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%.

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!

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.

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.

  1. pancake commissions
  2. liquidity pool tokens (invest in Genshiro and earn the interest rate and farming rewards)

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.

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.

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Polkadotters | Kusama & Polkadot validators

Polkadotters | Kusama & Polkadot validators

Czech bloggers & community builders. We are validators of Polkadot, Kusama, Darwinia, Crab, Bifrost, HydraDX, StaFi, Centrifuge under the name: POLKADOTTERS