Decentralized finance protocol Equilibrium has closed a Series A funding round worth $2.5 million with participation from some big names in the industry.
Equilibrium, the self-described first interoperable money market on Polkadot, will use the funding to develop a suite of DeFi products comprising a comprehensive lending platform and a professional-grade cross-chain DEX.
The multinational seed round included participation from KR1, Signum Capital, Hypersphere, Block Dream Fund, Genesis Block Ventures, CMS holdings, AU21 Capital, DFG Capital, PNYX Ventures, FBG Capital, LD Capital, and several others.
Also, the announcement stated that the resource influx from this investment round would win the Polkadot parachain lease auction with $43 million in DOT. The parachain lease offering (PLO) will run from April 12 to April 25.
Equilibrium ready to roll
A spot market with embedded margin trading functionality is on the way, it added, as the architecture takes a unique risk-based approach to assessing the cost of borrowing. This ostensibly makes the system more sustainable without coming off as a clone of any existing DeFi platform.
Alex Melikhov, CEO at Equilibrium, told BeInCrypto that DeFi interoperability obstacles will soon be overcome:
“By now we have been considering lack of interoperability as the biggest obstacle for DeFi. Specifically, dApp’s capacity to talk to each other over blockchain boundaries. But we believe it will be solved soon along with the Polkadot progress.”
Equilibrium is one of many DeFi projects developing and making progress on Polkadot. It has recently received a grant from the Web3 Foundation to bring Curve Finance to the Polkadot ecosystem.
The Equilibrium mainnet has recently been launched, and the team has won a parachain slot on the Rococo V1 testnet on April 2.
This investment round will enable the protocol to continue bringing a lot of value to the Polkadot ecosystem by becoming a fully-fledged parachain.
The PLO will be conducted in two stages, a token swap followed by a crowd-loan. A blog post explained how this would work:
“Participants submit DOT and receive EQ tokens in exchange at an initial swap rate of 0.07 DOT per 1 EQ. They simultaneously get the right to swap their DOT back for EQ at the end of the parachain lease period for free, all while keeping any earned bonuses in EQ.”
Equilibrium stated that it expects to meet the lease period expiration by successfully raising 250,000 DOT.