The Problems with DeFi and How EQIFI Can Solve Them

GRAND CAYMAN, Cayman Islands, April 23, 2021 (GLOBE NEWSWIRE) -- Today’s financially challenged climate of high unemployment due to prolonged lockdowns, strained central banking policies, the threat of hyperinflation, and artificially restrained interest rates, have shaken confidence worldwide in major 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 is focused on “passive income” by putting one’s assets to work in the form of staking, providing liquidity, yield farming, and other participation in what became immensely popular in the Summer of 2020 and continues to grow: Decentralized Finance, or DeFi. These platforms have their own set of advantages and challenges to address. DeFi often provides lower costs, better security, more privacy, and greater accessibility worldwide, yet often with unique issues.

Trust Issues

Addressing the uncertainty and even distrust surrounding traditional banking institutions and state governments, DeFi platforms offer a significant reduction in intermediary involvement through the use of automated functions via smart contracts. These “trustless” systems aligned philosophically with the original principles of decentralization put forth in Satoshi Nakamoto’s white paper for Bitcoin, especially appeal to the technologically savvy investors of today.

Just How Decentralized?

Any single party or entity doesn’t control a truly DeFi platform, operating instead as a function of a significant, dispersed number of individuals. However, the vast majority of lending platforms for blockchain assets 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-chain.

Some “DeFi'' platforms are decentralized only to varying degrees in different ways. For instance, decentralization in DeFi may refer to the protocol’s governance and upgrades or other changes to those protocols. In this way, native governance tokens function a bit like share votes. The degree of governance decentralization may vary from one platform to another. Some are primarily governed by venture capital investors, while others have more significant, more active user governance communities. Like Synthetix -- begin with governance by a Foundation that is eventually decommissioned, allowing the protocol to be governed under the control of decentralized autonomous organizations. The shift affords more power to token holders while providing a mechanism to protect token holders from collusion and censorship.

Lex Sokolin of ConsenSys, states there are DeFi platforms with some degree of centralization, depending on which aspect of their architecture is examined. He explains:

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

The EQIFI Solution

EQIFI, the new DeFi protocol partnered with EQIBank, solves these problems by providing a complete, community-governed, single interface DeFi solution where users may manage their entire banking, trading, and lending services for fiat and cryptocurrencies. This addresses issues of efficiency, which in turn addresses issues of speed.

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

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

Decentralized protocol

The decentralized protocol allows pooled lending, borrowing, and investing for ETH, ERC-20 tokens including wBTC, Stablecoins, and select 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, most practical, and most profitable financial products all on a single platform: Fixed Term Products, Variable Rate Products, Interest Rate Swaps (Refinancing), and a Yield Aggregator. These four products work collectively to provide a complete ecosystem of next-generation financial products, offering the ability to create and manage derivative products from a single protocol.

The Fixed Rate, Variable Rate, and Interest Rate Swap Products of EQIFI feature automatic lender protection built into the smart contract system. Each Product features industry-leading LTVs (Loan to Value), which are enhanced by holding native EQIFI Tokens. If the fair market value of the underlying collateral drops below the prescribed LTV at any Valuation Stamp, the system takes remedial action. This takes place in a phased approach, designed to ensure an automatic safeguard for the lender and drive liquidity.

Users of EQIFI may open accounts with EQIBank, affording seamless DeFi to virtual banking. EQIBank offers a suite of products, including current accounts, credit cards, traditional/cryptocurrency custody, and OTC.


The EQIFI protocol is governed by EQIFI (EQX) token-holders. EQIFI structure gives the community complete control over all proposals, voting, and the execution of changes via the governance functions of the EQIFI platform. The community may propose new asset classes, new interest rates, and new fees, providing an entirely new governance model for banking.

EQIFI sets new standards, establishing trustless 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 both in 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

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