The problems with DeFi and how EQIFI can solve them

GRAND CAYMAN, Cayman Islands, April 23, 2021 (GLOBE NEWSWIRE) – The current climate of high unemployment, financially difficult, due to prolonged lockdowns, tense central bank policies, the threat of hyperinflation and high rates of artificially curtailed interests have shaken the confidence in the world banking institutions as well as state economies. Individuals and institutions are looking for new and innovative ways to preserve and generate wealth.

Much of this focuses on ‘passive income’ by putting its assets to work in the form of staking, liquidity, farm yield and other stakes in what became extremely popular in the summer of 2020 and continues to grow. grow: decentralized finance, or Challenge. These platforms have their own advantages and challenges. DeFi often offers lower costs, better security, more privacy, and greater accessibility around the world, but often with unique issues.

Trust issues

In the face of uncertainty and even mistrust around traditional banking institutions and state governments, DeFi platforms offer a significant reduction in the involvement of intermediaries through the use of automated functions through smart contracts. These “trustless” systems, philosophically aligned with the original principles of decentralization set out in Satoshi Nakamoto’s white paper for Bitcoin, are particularly attractive to today’s technologically savvy investors.

How decentralized?

A single party or entity does not control a true DeFi platform, but rather operates on the basis of a large and dispersed number of individuals. However, the vast majority of blockchain asset lending platforms are not truly decentralized but centralized and carry traditional trust-based concerns. These centralized platforms are necessarily limited to particular assets or groups of assets and rarely allow movement of a position on the chain.

Some “DeFi” platforms are only decentralized to varying degrees and in different ways. For example, decentralization in DeFi can refer to governance and protocol upgrades or other modifications to those protocols. In this way, native governance tokens work much like share votes. The degree of decentralization of governance may vary from platform to platform. Some are primarily governed by venture capitalists, while others have larger and more active user governance communities. As Synthetix – start with governance by a Foundation which is ultimately decommissioned, allowing the protocol to be governed under the control of decentralized autonomous organizations. The change gives more power to token holders while providing a mechanism to protect token holders from collusion and censorship.

Lex sokolin of ConsenSys, indicates that there are DeFi platforms with a certain degree of centralization, depending on the aspect of their architecture examined. He explains:

“You can have a decentralized network with an unauthorized financial product used by anyone anywhere, but it can be built and governed by one party with centralized control.”

The EQIFI solution

EQIFI, the new DeFi protocol in partnership with EQIBank, addresses these issues by providing a comprehensive, community-managed, single-interface DeFi solution where users can manage all of their banking, trading and lending services for fiat currencies and cryptocurrencies. This addresses efficiency issues, which in turn addresses speed issues.

Led by financial services experts with over 150 years of combined experience, EQIFI is a system designed to meet the needs of the unbanked worldwide. It solves pressing issues related to trust in DeFi itself for customers seeking services based on higher social values.

EQIFI simplifies DeFi by bringing together many products and services, all on one user-friendly platform. With EQIFI, the entire digital asset, blockchain and cryptocurrency ecosystem of traders, investors, exchanges and app users can borrow against multi-type assets without selling them. DApps can borrow assets for use in the Ethereum ecosystem without waiting for an order to close or requiring off-chain activity. Speculators can deploy various trading techniques, including shorting, to maximize their opportunity, while miners can borrow against a wide selection of collateral.

Decentralized protocol

The decentralized protocol allows pooling of loans, borrowings, and investments for ETH, ERC-20 tokens, including wBTC, Stablecoins, and some fiat currencies. It provides a single uniform platform for DeFi products with EQIBank accounts, loans, custody, debit and credit cards, OTC and wealth management.

EQIFI is unique. It serves as a single source for the most popular, convenient and profitable financial products, all on one platform: fixed term products, floating rate products, interest rate swaps (refinancing) and an aggregator. yield. These four products work together to provide a complete ecosystem of next-generation financial products, offering the ability to create and manage derivatives from a single protocol.

EQIFI’s fixed rate, variable rate and interest rate swap products feature automatic lender protection built into the smart contract system. Each product is at the forefront of the industry LTVs (Loan to Value), which are enhanced by owning native EQIFI tokens. If the fair market value of the underlying collateral falls below the prescribed LTV on any appraisal stamp, the system takes corrective action. This takes place on a phased approach, designed to provide automatic backup for the lender and boost liquidity.

EQIFI users can open accounts with EQIBank, providing transparent DeFi to virtual bank. EQIBank offers a suite of products, including checking accounts, credit cards, traditional custody / cryptocurrency, and OTC.


The EQIFI protocol is governed by the holders of EQIFI tokens (EQX). The EQIFI structure gives the community complete control over all proposals, voting and execution of changes through the governance functions of the EQIFI platform. The community can come up with new asset classes, new interest rates and new fees, providing a whole new governance model for banks.

EQIFI sets new standards, establishing trust-free transactions and driving real-world adoption.
As a global financial protocol, it is built on the value proposition that all products and services should be uniformly available and delivered digitally. EQIFI includes a multi-faceted decentralized financial system native to crypto to recreate our legacy financial system. It successfully bridges the gap between fintech and DeFi, combining the two into a single ecosystem with an existing licensed and regulated digital bank. Welcome to the future of DeFi.

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Media contact

Company: EQIBank
Contact Name: David Cullinan
E-mail: [email protected]

A photo accompanying this announcement is available at

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