Genshiro is a canary network of Equilibrium that shares the experimental spirit of Kusama.
Cross-chain DeFi one-stop shop
Genshiro is a cross-chain protocol that helps users seamlessly earn yield, borrow, and trade on margin. Using asset portfolios instead of single collateral vaults.
We’re concerned about simple replication of Polkadot-based technology on Kusama. Simple ports like that don’t make sense if you want to push boundaries and unlock the full potential of the DeFi market. Equilibrium definitely wants to build something that stands out on its own Kusama-based merits while bringing value to the Kusama network and its community.
For these purposes, our Kusama-based parachain inherits an experimental spirit that’s quite common for the Kusama network. It's a testing site for our future products before they’re deployed to Polkadot. This means we get to implement some new features for future iterations of Genshiro, like derivatives, perpetual swaps, and futures contracts on gold, ETFs, commodities, and stocks.
With a bolder set of parameters and listed assets Genshiro will be an attractive toolset to those traders who take more risk in their operations.
For experienced Polkadot developers, the difference in making the leap to Kusama is primarily in adjusting system parameters. Genshiro offers a lower minimum collateralization ratio that introduces way more flexibility for leveraging and margin trading.
Genshiro is more generally accessible than our Polkadot’s platform because it supports numerous ERC-20 / BEP-20 tokens already. Generally speaking we are less selective in picking assets for our Kusama-based product line rather than for Polkadot, where only low-volatile and popular cryptocurrencies will be added.
Another innovative element here is Genshiro’s governance model. It works by letting users stake GENS (Genshiro’s Kusama-based utility token) to propose and vote on new system parameters. The longer a user’s funds have been staked, the more weight their vote gets on the proposal.
Just like its older brother, EQ token of Equilibrium, Kusama-based GENS token functions as a multipurpose token within the Genshiro system. In particular, GENS plays a role of internal currency of Genshiro in several system components:
- GENS token is a governance token that allows its holders to express their opinions about the system state and enforce governance decisions via referendums.
- Validators/Collators receive rewards in GENS token for running blockchain nodes and performing parallel (e.g off-chain) work.
- Users pay transaction fees in GENS tokens.
- Borrowers pay interest fees in GENS tokens
- System distributes rewards in GENS tokens for liquidity that users bring.
- GENS can be used as bailout and collateral liquidity in Kusama-based liquidity pools once tokens obtain value
We’re excited to see where we can go with Equilibrium and Genshiro beyond Kusama and Polkadot. All told, our mission is to unlock the full potential of the DeFi market. This calls for a holistic approach that goes beyond embracing just one platform.