Search

Crypto explained

EQUOS Origin explainer: How does EQO enhance my earnings potential?

Friday, March 19, 2021

The core utility of EQUOS Origin (EQO) is around enhanced earning power on assets held in “Earn” accounts on the EQUOS platform and in Digivault wallets.

Coming very soon, EQUOS will introduce the functionality to earn yield on different asset balances within wallets on EQUOS, powered by Digivault, our custodian platform. This will mean, for example, that holders of Bitcoin on EQUOS will be able to earn yield on their Bitcoin by placing it into a lock account for specified periods of time. This is where EQO’s utility will come into play. EQO will effectively increase the yields available to clients by a factor of at least 10%. Historical yields of different assets will be posted on the website here 

Introducing the Power Ratio 

As clients lock up an asset, they will be asked if they wish to lock up EQO against that balance. EQO will have a Power Ratio that grows over the life cycle of the token, increasing every 90 Reward Blocks in line with the ‘halving’. During the first 90 Reward Blocks of the EQO token, EQO will have a Power Ratio of 1 EQO:1 USD. This means that if a client is locking up US$500 of Bitcoin, they would need to lock up 500 EQO against it to achieve the full enhanced yield available for Bitcoin. After the first 90 Reward Blocks, EQO’s Power Ratio increases to 1 EQO:2 USD, meaning the same client would need to lock up just 250 EQO against US$500 of Bitcoin to achieve that enhanced yield. EQO requirements are locked at the initiation of the placement and do not fluctuate over the course of that specific holding period (no matter if Bitcoin or the placed asset goes up or down in USD terms, or indeed if the Power Ratio changes during the period). 

Enhanced yield will vary depending on the market environment, but the increase in interest will be at a minimum of 10%. For example, if client A locks up her balance of US$400 of Bitcoin at a time when yield on Bitcoin is at 5% and we are post the first EQO Reward Block ‘halving’, she would need 200 EQO to benefit from the full enhanced yield on her account which would be a minimum of 5.5% (or 10% higher than the normal yield). 

As discussed, the EQO Power Ratio will increase by 1USD after every ‘halving’ of the Reward Block. There are seven halvings to get to the final 8th Epoch of reward blocks. This would mean that by the final period, the Power Ratio of EQO will be 1EQO:8USD. 

Enhanced Yield  

For each fixed term lending activity, there will be two rates for locking up balances  the Yield Rate, which is the standard rate that the client would usually obtain for locking up their funds, and the Enhanced Yield Rate, which is the rate that a client would receive if they were to lock up an equivalent amount of EQO in accordance with the Power Ratio. 

The Power Ratio is the amount of EQO required to be locked up for each USDC held in lending activity. 

 The Enhanced Yield Rate will be at least 10% higher than the Yield Rate, as shown in Equation A-1.  

 Shape, arrow
Description automatically generated 

Equation A-1: Relationship between Enhanced Yield Rate and Yield Rate 
Where:  
Ryield,enhanced is the Enhanced Yield Rate  
Ryield is the Yield Rate  

 

To learn more about increasing your earning potential, read the whitepaper here 

Related Articles

Tether continues to fuel crypto market liquidity

April 3, 2021

From the moment Satoshi Nakamoto published his white paper in 2009, Bitcoin has been the highest-priced, most well-known, and most coveted cryptocurrency. But when it comes to ensuring liquidity on the crypto market, a different coin has gained prominence: Tether (USDT).

Read More

Keep up with crypto through EQUOS!


This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Bitcoin Cash: Cheaper and Faster Transactions

March 14, 2021

Bitcoin Cash arose as a result of suggested updates to the Bitcoin protocol that were not unanimously accepted. A hard fork split the original Bitcoin network, and the coins along the new fork have since been referred to as ‘Bitcoin Cash,’ which trades under the ticker ‘BCH.’

Read More

ETH: Decentralized finance’s ultimate power coin

March 4, 2021

As EQUOS launches Ether Perpetuals on its platform, we look again at the growth and utility of the underlying Ethereum network, and focus on how it has fueled the burgeoning Decentralized Finance industry.

Read More

How to Trade in a Sideways Market

February 16, 2021

Cryptocurrency markets are famous for their inherent volatility, yet they are also no stranger to quieter periods. In fact, Bitcoin (BTC) spent almost two months in the summer of 2020 locked in a stubborn trading range between $9,000 and $10,000. The number-one cryptocurrency almost resembled a stablecoin with its uncharacteristic lack of volatility during that time. So, how do traders learn to trade in sideways markets and capitalize on the smallest fluctuations in an asset's price? Here are a few tips.

Read More