Alex Melikhov updates on Equilibrium and Genshiro launch

0:01i'm ashton addison from eventchain for investmentpitch media in the crypto coin show and today on blockchain interviews we have alex melikov the ceo of equilibrium alex welcome back to the show and it's great to have you back so soon absolutely thanks shane ashton for having me here and i'm definitely excited as well to get reconnected and to touch base on uh

0:25everything defined polka dot and kusama definitely equilibrium's done a lot since our last interview it was not even a month ago and you have way more updates on jenshiro uh and the launch as well but i would love to kick it off for the viewers who didn't see the first interview with just a quick overview on equilibrium's platform and how it fits into the defy ecosystem

0:47yeah absolutely um we are building equilibrium on polka dots um it's the first conglomerate of d5 products which is comprised of the comprehensive lending platform and the professional grades decentralized exchange which is uh cross chain based on uh audiobook and um in nutshell we are solving um basically one of the main challenges for the current device space uh

1:12it's uh the fragmentation not only the user experience you know the old device currently scared across multiple defy uh protocols and uh platforms uh but also the fragmentation of liquidity because thanks to the underlying platform which is polka dots we are interconnecting different blockchains enabling users to utilize their assets based on on various various networks

1:41definitely it's a little bit scattered right now and i do really like the platform that equilibrium is putting together and i know that the most recent focus now is on genshiro and that's where i want to focus this interview around is is the discussion around gen shiro in the upcoming launch which is part of the d5 conglomerate of equilibrium can you talk more about the

2:01primary purpose of zhengchiro and how central it is to the equilibrium ecosystem so maybe the right point to kick this off is to um give a little bit more context on um the kusama network itself because maybe maybe the viewers know that polka dot is not the only network which is based on the substrate technology but there is also the kosama network

2:30which was supposed to be a test network for uh for polka dots however eventually it obtained value and currently its valuations one-tenth of uh polka dots respectively around four billion dollars uh which is uh quite quite big valuation and um uh the thing is that uh kusama is uh currently uh having its own community and uh the paris technology the developer house which is behind both

3:00polka dot and kosama are also putting very much efforts into development of the technology and um actually uh you you guys know that uh there will be a very very soon launch of um variety chains and kusama will be the first network uh where parachutes will arrive very very soon and um at equilibrium we have

3:26made a decision to step this path as well so we decided to uh launch our own bar chain which is called jin shira it will be in second access with uh with the kusama network um expectedly very soon uh because we will be participating in the coming parachain auctions which are taking off next week and um in broad strokes ginger is not just the replication of equilibrium on kusama

3:58so the idea was to uh build up a little bit different setup primarily from the perspective of its system parameters and the overall sort of risk which the system takes so from this perspective ginger will be um more interesting to those uh traders who used to taking more risk in their operations uh because uh the system parameters of genchira uh

4:26will be a little bit more experimental uh compared to equilibrium uh also the lineup of acids that will be added on ginger will be wider than the lineup of assets on equilibrium where we'll be very much selective in terms of assets that will be adding to the platform um so in general there will be mostly all the um uh sort of popular um assets uh specifically from ethereum added from

4:52the day one um and um we we think that it will be a good sort of defined platform which will inherit the experimental spirit of the kusama network overall that's great to know and thank you so much for that background on kusama as well there are a lot of people that are still trying to familiarize themselves with the defy ecosystem and polka dot with these pair of chains

5:15and pair chain lease offerings it can get quite technical um even for those that are starting to get into d5 and so from what i understood uh correct me if i'm wrong but as equilibrium is to to polka dot the genshiro is is to kasama where it's sort of running on the network and they all do tie in together but is that sort of correct uh yes in in overall it's it's definitely

5:42correct and um equilibrium is uh basically plugged uh into polka dots and the ginger is supposed to be uh connected with the um with the kusama network um and um um both uh bar chains uh i mean respectively equilibrium and chair will bring certain value to the uh polka dot community into the kusama community as well and i was reading that jenshiro is a is

6:10a canary network on kasama and i haven't familiarized myself with that term before what does that specifically mean so it actually means that um on the on the canary network you can test out particular things uh so we are expecting to utilize ginger as a testing site for our further developments so all kind of new products that we are expecting to develop

6:36in terms of um our development roadmap firstly will be rolled out on ginger and test it there and if they will be proved as sustainable ones or meet certain demands we will be deploying these products on polkadot as well great to know and i was reading that you have a lot of newer features that you're looking at releasing on genshiro first and uh inherently

7:02there's a little bit more risk as it's more exploratory and and it's you know launched there first can you talk about some of those d5 features that you're looking to first test on genchiro um of course so first of all uh we're expecting to have the lower culturalization requirements on jin shira uh they will be set at 100 percent and it's kind of presidential because

7:25uh none of the current platforms in the defy space have so low level of consolidation requirements and will be first of a kind from from this perspective so again i also mentioned the lineup of assets which will be added on uh it will be a little bit more um sort of um experimental compared to to equilibrium uh so there will be

7:52mostly all popular erc20 tokens added to ginger almost from the day one um so um also we are expecting to launch certain derivative products on the interior first it will be some etfs and some some synthetic synthetic assets like stocks and bonds um so we will see how it will develop and then again we'll be

8:19happy to um to develop a kind of similar uh product line on polkadot as well that's great to know and it's interesting to see that 100 collateral collateralization uh for loans normally i believe it's a lot more over collateralized and they're looking for extra funds to secure can you talk about the rationale behind that is it just more of an experimentation

8:43and do you see this as an incentivization for early adopters to start experimenting and using the financial products on genshiro by having lower collateralization um so first of all um uh it might sound that setting that la that low level of culturalization uh might be a little bit risky risky uh to be for the overall system and it's it's solvency

9:09um however it's not the case for ginger and equilibrium because we have a completely different uh system of debt management compared to other d5 platforms um so for example we don't have uh auctioning in place uh when it comes to debt liquidations in case of you know some margin call events and stuff we um have established the bailout pool and

9:34respects the bailout mechanics which is uh securing the system and means that there is uh not only boards and lenders on the platform but also basement who are acting as insurers and they are putting liquidity in advance to make system more sustainable so from this perspective we are not hedging the risk of slippage in case of liquidations and um uh we actually don't require that

9:59high over totalization that is as it's usually um um implemented in other defined platforms like uh we we have on ethereum and other protocols yeah and uh in terms of like rationality behind that since what's the particular use case um i think uh that there there are a lot of market participants uh who are keen on uh leveraging um their position quite heavily and so you

10:27know that the lower culturalization requirements the platform has the more leverage you can get on your initial assets definitely and you know as jenshiro is launching uh soon with this kusama slot can a lot of people are familiar with you know old school icos and ido's and the way that polka dot and kusama are doing it is a little bit different and i know that you're also

10:52incorporating an nft auction to help fund this slot can you talk more about what does it mean to fund the kusama slot on polka dot and then more of the specifics on the auction um yeah so maybe first of all uh let's give a little bit backgrounds on what exactly the parishian is and how projects become power chains on both kusam and polkadots right so first first of all uh both networks

11:20they are based on the substrate technology uh which is uh initially the framework for building your own blockchain right so in polka dots and kusama you're not creating your applications in in that sense how it works on ethereum on other standalone blockchains but you're creating your own blockchain and you're efficiently uh coding not the smart contracts but

11:42the runtime of this blockchain which is completely different developer experience and then when you have your own blockchain in place you need to connect this blockchain with one of the relay chains uh whether it would be polka dots or kusama and the this both both of these networks they have um limits its uh capacity for for uh connecting uh power chains uh

12:10respectively limited uh number of bar chain slots uh so um on both networks the the the the number of parachute slots is uh 100 and obviously it's a kind of limit limited resource right and you need to um uh compete for being one of uh networks or one of blockchains connected to with either kosama or polkadot uh

12:36so um the guys um actually came up with a very interesting model uh which is the persian auctions and you know um in case if you want to become the fire chain um on one of these networks you need to stake quite substantial amounts of funds uh either uh kusama tokens or or dots volca dot tokens uh to win uh the auction

13:02um so for both networks there are different estimations for this amount of tokens that we need to stake on kusama as per our estimation is it's around 100 000 ksms which is currently is quite substantial amounts of money it's uh almost 40 million dollars and or even even a little bit more right and obviously not you know average projects

13:32doesn't have uh that much funds uh that he that the the project can actually just simply stake and get frozen into into the network staking for for its priority slot uh fortunately uh there is a solution to that and uh the solution is the parachute parachin uh lees offering uh so it's the mechanics which is incentivizing um um ecosystem participants to stake their

14:00um either kosamas or or dot tokens for particular parachuting projects uh for their favorite projects and to support through that uh the project sends uh basically to uh provide with the sufficient amount of funds to um to win to win the slot on the auction uh obviously we are also uh uh taking this approach and uh in general we're rolling out the comprehensive strategy

14:27um the respectively this uh pressure is offering strategy to obtain this slot um so approaching auctions on on kusama they're kicking off next week and we are we are getting prepared for that uh so the campaign will be kicking off uh uh very very soon and um uh in this sense uh we will be distributing um 20 percent of the interior of ginger

14:55token supply to those who will be staking their kuzamus for our prior chain slot uh so obviously we are not giving the financial advice here and uh uh investment advice as well right because efficiently it's not an investment uh when you're staking posamis for um for for ginger or maybe some other summer-based projects you're efficiently not investing in this project right

15:21because you're keeping keeping up with your with your personas um in general we are offering quite substantial um sort of drop of ginger tokens to those who will be staking pushamas uh for for our pressure in slots uh up to one thousand five hundred uh jinchiri tokens per one uh per one kusama uh and um actually there will be also a comprehensive bonus structure so

15:47eventually you can get up to 40 bonus on uh this uh this number of tokens uh so eventually you can get over two thousand uh gingers uh per one uh somewhat secondary steak wow that's uh that's yeah great keep going if this is a thank you so much for the information on the background on the parachain lease offerings and i think that brings a lot of light into

16:11the new infrastructure and the way that uh you're able to create these pair chains on polka dot because it is uh quite technical and different than than an ethereum launch absolutely yeah and it's it's quite interesting how things are working out um so respectively with regards to our uh parachain list offering uh we do have several mechanics on the table

16:35so it's not just only this person with offering or crowd loan when you're staking kusamus and receive our tokens in exchange uh in the course of the uh parachain release period uh which will be by the way uh 48 weeks like uh 336 days almost one year and besides that we have worked out the mechanics which is really unique and no one takes this approach

17:03so it's actually the uh auction uh of nfts so we um if if you look at the website of ginger it's the jinshira dot io you will find a lot of illustrations there so it's kind of um outlining the experimental spirit of jinchira and we decided to create the collection of artwork uh which is uh comprised of seven awesome cats uh each of these cats uh

17:32actually is pertaining to particular cryptocurrencies so we do have uh seven cryptocurrencies in place uh respectively uh bitcoin uh ethereum cats uh being b cats uh polka dot cats kusama cats equilibrium cats and ginger cats so uh all these all these cats they will be um they actually they're uh represented uh

17:57with the with the nft token and the collection of these cats will be auctioned out through the renewable platform on ethereum and uh what's special about this guest that each of these cats uh has certain uh its own price feed which is provided by chain link and this is a kind of very interesting use case for uh for chain link as well uh so the idea that

18:22there is uh certain thresholds uh or for for price of each of these cryptocurrencies and when the price of particular cryptocurrency um hits a certain threshold uh the cat is turning into its gold version so for example the bitcoin cat will turn into the gold bitcoin cats when bitcoin will hit one hundred thousand dollars wow yeah so so yeah and the the idea

18:49that uh through this through these auctions we are expecting to uh raise some funds uh which will be used to uh fund our operations primarily our uh kusama uh kusama slots uh via in the in the auctions this is really really interesting alex i'm really excited to see the launch of these cats uh it's really unique and i like that they could turn into gold and uh nft

19:16cats i'm sure that would increase in value down the road when when these cryptocurrencies do increase so that's really interesting for the viewers that are looking to find out more about uh the kusama crowd loan campaign uh the auction that's set for next week what's the best way for them to to learn more and to take action um you guys need to um visit our website

19:39um it's uh jin shira like uh it's uh on my t-shirt ginger dot io and you um actually finds all the information related to our nft uh token auction and uh purchasing leads offering as well so the uh the cats auction will kick off on june 16th on the uh on june 15th i'm sorry on on on the

20:07wearable platform on ethereum um and there will be other events which are which are also coming over next week uh you will also find all the information on our website sounds great alex i will leave those links in the description box below as well uh all the best with the upcoming auction and and uh the crowd loan campaign i'm really excited to see jenshiro grow

20:29uh beyond this because it sounds like there's a lot of potential here that's ready to be unleashed so all the best with that and let's follow up in the near future absolutely thanks so much ashton for having me here and still soon you