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Binance and Eosfinex join the EOS DeFi protocol to carry out intelligent contract updates

May 22, 2020

Equilibrium, an EOS-based decentralized finance (DeFi) project, similar to MakerDAO (MKR), It expands its governance system by four block producers, in particular Binance.

Other members are Eosfinex, a decentralized EOS exchange connected to Bitfinexas well as independent block producers EOS Nation and EOS Cannon.

The group of four will act as “government oversight” of the system. The main purpose is to sign Equilibrium’s intelligent contract updates.

Binance and Eosfinex join the EOS DeFi protocol to carry out intelligent contract updates
Binance and Eosfinex join the EOS DeFi protocol to carry out intelligent contract updates

As Alex Melikhov, CEO of Equilibrium, told Cointelegraph, this uses a special EOS function:

“One of the main benefits of EOS is the upgradeable smart contract code. In other words, you can migrate seamlessly to new versions of your application without disrupting the entire system.”

This approach differs from that of Ethereum, where new iterations of DeFi protocols often require a complex migration process.. Older versions may be closed to avoid security risks, as was the case with Maker’s Single Collateral Dai, or they can be left to their own devices as with Uniswap V1.

Reputation-based decentralization

Supervisors have portions of a key with multiple signatures that are used to authorize improvements to the ecosystem. They are selected from “the best known and most trusted ecosystem participants who could jeopardize their reputation for integrity and the relevance of smart contract updates“Melikhov said. The decision to add new units is up to all members of the existing council, not just the balance,” he noted.

This approach is an interesting focus in the world of DeFi. In many Ethereum-based projects, the founders of the protocol have administrative keys that give them special rights to the contract, a practice that the community rejects.. This is usually done with the promise of destroying these keys once the protocol is mature enough.

Instead, The equilibrium government is “already decentralized,” Melikhov said, although he admitted that this is not a completely suspicious process that is guaranteed by economic incentives or algorithms.

The project opted for an alternative approach: “Creation of a framework for authority tests that consists of trustworthy counterparties who are independent due to their background”.he explained. There are no plans to destroy these update keys as this would mean missing out on the additional capabilities of EOS.

This approach fits into the broader context of EOS governance, which is based on agreements between certain interest groups.

Binance wants more uses for BNB

A Binance representative told Cointelegraph that the exchange views EOS as a “promising blockchain for DeFi development”., especially for his cross-chain skills. Since EOSDT recently integrated Bitcoin (BTC) as security, the company also sees a place for the token of the exchange:

“We hope to see our BNB token as an integrated asset in more DeFi applications, and we believe that it can eventually be introduced as a new way of guaranteeing the stablecoin EOSDT.”

The inclusion of Binance as a supervisor does not require ownership of the Equilibrium Governance Token, NUT, as the spokesman said.. However, the exchange seems to be an incentive to see the success of the project.

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