Equilibrium's ambitions are not limited to Polkadot only — the company has also launched Genshiro, a DeFi parachain on Kusama. This idea has been in development for quite some time, and only now have we had the opportunity to share all the details. This product is "Prediction Markets". It was created to expand the utility of the GENS token and even improves its tokenomics.
- What are prediction markets?
- The concept of Genshiro
- Key features of Genshiro
- GENS Tokenomics
- Lockdrop for existing EQ holders on Polkadot
What are prediction markets?
Prediction markets on Genshiro – are a betting tool on event outcomes with two possible results: "yes" or "no", allowing users to bet on fixed outcomes, such as the victory of a sports team, with known potential profits or losses beforehand. This product was launched on Genshiro to increase the utility of the GENS token and encourage community participation by introducing token burning mechanisms and offering bets in the form of GENS. Genshiro supports price prediction markets with oracles providing medianized prices from several sources, allowing bets on the price movements of BTC/USDT through range and level auctions. The platform currently offers only short-term options and bets accepted at specific time intervals, with the option to opt-out of the bet.
The concept of Genshiro
The developers are concerned about simply copying technologies based on Polkadot and on Kusama. Simple transfers make no sense if you want to unlock the full potential of the DeFi market. Equilibrium definitely wants to create something unique that will stand out on the merits of Kusama, bringing value to the Kusama network and its community.
This means that the team will be able to implement some new features for future versions of Genshiro, such as:
- derivatives,
- perpetual swaps
- futures contracts on gold, ETFs, commodities, and stocks.
With a bolder set of parameters and listed assets, Genshiro will be an attractive tool for traders who take on more risks in their operations.
Key features of Genshiro
For experienced Polkadot developers, the main difference in transitioning to Kusama is in adjusting system parameters. Genshiro offers a lower minimum collateralization ratio, which introduces much more flexibility for leverage and margin trading.
Genshiro is more accessible than the platform on Polkadot since it will support numerous ERC-20 tokens from day one. Overall, the team will be less selective in choosing assets for its product line based on Kusama than for Polkadot, where only low-volatile and popular cryptocurrencies will be added.
Another innovative element here is Genshiro's governance model. It operates by allowing users to stake GENS (Kusama-based utility token of Genshiro) to propose and vote on new system parameters. The longer a user's funds have been staked, the more significance their vote gets on the proposal.
GENS Tokenomics
There are 10 GENS tokens for every 1 EQ token. Thus, given the initial supply of EQ at 120 million, the total GENS supply on Kusama will be 1.2 billion. Their use includes:
| № | Use of GENS tokens |
|---|---|
| 1 | Management |
| 2 | Voting for validators |
| 3 | Transaction fees |
| 4 | Interest rates |
A quarter of the total token supply will be distributed through PLO.
In conclusion, the launch of Genshiro as a DeFi parachain on Kusama highlights Equilibrium’s ambitious plans to not just expand its presence in the Polkadot ecosystem, but also to bring innovative financial products to the market. Genshiro promises to be a significant addition to the DeFi ecosystem, offering more flexible and accessible tools for trading and investing. Given Kusama's experimental spirit, Genshiro has the potential to test and introduce even bolder and innovative financial products in the future, which could lead to further development and growth in the DeFi space.