DeFi: how to leverage on the EOS blockchain

The Equilibrium team recently launched a new tool on the market, called Pyramiding, which allows taking advantage of the principles of pyramid trading and leveraging on EOS.

Lever up your $EOS with Equilibrium’s new pyramiding product while enjoying the convenience of automated #transactions via @NewdexOfficial. Set your risk level and returns. https://t.co/yBwLjLhqEZ

— EQ finance ⚡ Empowering Liquid Staking (@EquilibriumDeFi) July 17, 2020

The project was born in collaboration with the Newdex exchange.

The Equilibrium platform provides several DeFi tools such as a decentralized stablecoin called EOSDT, it allows to use Bitcoin (BTC) as a collateral for EOSDT thanks to the integration of pBTC and its staking pools allow to obtain an interesting APR. 

Simply put, pyramid trading is a trading strategy based on the resizing of a gain position. It is a technique that allows maximizing earnings by strengthening positions as long as they are deemed convenient. We are talking about predominantly long positions. 

Thanks to Equilibrium, using this strategy, it is possible to lock EOS and generate the stablecoin EOSDT that will be used to buy more EOS on the Newdex exchange, and to use leverage. 

In this guide, we will see how the whole process works. To use Equilibrium we will need a wallet that manages EOS, like Scatter or Anchor, and at least 1 EOS to interact with the platform.

How to leverage with EOS 

The first step is to launch the wallet, connect to the Equilibrium platform and select Pyramid. Here a new position can be opened by clicking the “+” button at the bottom left. 

We will then be in front of a screen to set all the parameters of the transaction, such as the total EOS we would like to lock, the leverage to use (the maximum is 2.8) and on the right side, we will also see the costs of the fees.

Once the transaction is confirmed, the EOSDT stablecoin will be generated. By pressing the “Generate” button we can generate more EOSDTs, while to withdraw them simply click the “Withdraw” button.

In order to close a position, all or part of it, it will be necessary to click on the open position and click on “Delever” to repay the debt and the fees generated until the settlement of the debt.