PROJECT DESCRIPTION
PROJECT DESCRIPTION
Equivalence Protocol V2
Simply put - the Equivalence Protocol V2 is a smart-contract deployed and running on multiple blockchains. On each of these blockchains this smart contract creates the ERC-20 token, called Equivalence Token V2 (EQT), and assigns its attributes and functions.
On top of what includes standard ERC-20, new functions were added to the smart-contract that make it possible for other connected projects (smart-contracts) to mint and burn EQT in exchange for other tokens/currencies/NFTs or anything else of value those projects work with.
The main use of the Equivalence Protocol V2 is to assign value to the tokens of other projects and turn them into E-money tokens (token version of stablecoins) or asset-referenced tokens. (Anyone can come up with their own use-cases, provided they follow the rules stipulated.)
The goal of the Equivalence Protocol V2 is to become a "hub" for many other projects, which together create a whole small economy across the blockchains where Equivalence Protocol V2 is deployed.
Whether it is large scale project or tiny one, all kinds of smart-contracts are able to assign real world value to their tokens. With more projects joining, the total value locked into this small economy would grow, becoming more stable and reliable.
Equivalence Token V2
The Equivalence Token V2 (EQT) is the currency used by the Equivalence Protocol V2 and all the projects that will be connected to it in the future.
Basic properties:
Standard ERC-20
Intended supply of 100 000 000 tokens
Dynamic fees based on supply (the fee is burned)
An EQT can be used just like any other ERC-20 tokens - it can be held in standard Ethereum wallets, traded and transferred between holders.
In addition to what any ERC-20 token can do, there is more:
New EQT can be minted by anyone in exchange for the native currency of the blockchain or various other ERC-20 tokens. This method of gaining the EQT have two advantages: 1) there is no slippage and 2) it consumes less gas than use of the classical decentralized exchange (DEX).
Special functions included in the smart-contract of the Equivalence Protocol V2 allow third party contracts to create (mint) or destroy (burn) EQT. (Only contracts that pass the safety check will be allowed to mint new EQT. The burning of EQT must be approved by its owner).
The EQT is used in all the projects that connect to the Equivalence Protocol V2. All of these can affect its supply - either by burning the EQT to create something new in exchange, or minting the EQT in exchange for it's own tokens/currencies/NFTs.
The EQT is designed to keep its supply close to the intended supply, despite all of the connected projects which affect the supply - this is achieved by the dynamic fees and burning of EQT accumulated by the fees of liquidity pools.
EQT accumulated by the fees of liquidity pools is burned automatically by the smart contract holding the liquidity pool positions. Additionally, when the supply reaches the intended supply, two things will happen - minting of new tokens by users will not be available anymore and fees for using the externalMint start to apply. Fees are based on the difference from the intended supply and should stay negligible when the supply is close to the intended supply.
For the details about fees please see the section "Fees and Rewards".