Oasis Network and Equalizer aims to revolutionize Flash Loans through their recent Partnership

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Equalizer has recently announced their enthusiasm in working with the privacy-enabled Oasis Network blockchain, which obviously, is redefining decentralized finance. The DeFi revolution started on the Ethereum network, but today it has expanded further. There are multiple blockchains that are solving the challenges faced by Ethereum and other older generation blockchains. This is the reason for the rapid growth of DeFi on these next-generation blockchains (such as the Oasis Network), which provides better scalability, security, privacy, and many other additional features.

Equalizer, objectifies the enablement of simple flash loan functionality on the main blockchain that promotes the concept and application of DeFi. Through this partnership between Oasis Network and Equalizer, users can seamlessly access lightning loans through dedicated service providers. By obtaining these lightning loans with low interest rates, users will be able to use them for a variety of purposes, including, but not limited to, arbitrage, collateral exchange, liquidation and portfolio rebalancing.

Furthermore, the cooperation of Equalizer with the Oasis Network and other blockchains will also showcase Equalizer’s flash loans and dedicated flash loan services to a broader user base, and expand demand for the platform.

Oasis Network is designed for the next generation of blockchains and is the first blockchain platform to support open financial privacy and a responsible data economy. Combined with its secure, high-performance architecture, Oasis Network can power scalable private DeFi, revolutionize open finance, and expand it from merchants and early adopters to the mass market.

Its unique privacy features will not only redefine DeFi, but also create a new type of digital asset called Tokenized Data, which allows users to control the data they generate and earn rewards for using applications, creating the first responsible data economy.

On the other hand, Equalizer is the first dedicated flash loan marketplace built on a multi-chain infrastructure that can handle the growing demand for decentralized loans, which can increase the trading volume of any listed asset. Compared to the popular all-purpose DeFi protocol, it provides the greatest advantages, and by providing lower fees, an almost unlimited choice of token vaults, high liquidity through income agriculture, and scalable infrastructure, it becomes compatible with Different.

The integration of Flash Loans on Oasis Network is obviously an important progress in the world of blockchain. Flash Loans is the first unsecured loan option on DeFi. Flash Loans is specially designed for developers, allowing users to borrow funds instantly and easily, without collateral, as long as the liquidity is returned to the common pool within a transaction block. If this does not happen, the entire transaction will be rolled back to effectively undo the operations performed before that point. This ensures the safety of the funds in the reserve pool. Use cases include arbitration, warranty exchange, self-liquidation, etc.

As a result of this partnership, a user can perform a transaction as exemplified below. In the case of a quick loan, the basic transaction is as follows:

  • Get a flash loan of 10,000 ETH
  • Trade ETH for some DAIs on exchange A
  • Trade DAI for some ETH on exchange B
  • Loan payment

Of course, users can schedule the entire flow of operations to perform any task of their choice (more on that later). The main conclusion is that whatever strategy the borrower wants to adopt, it must be done in the same transaction in which he borrowed and repaid the funds. Therefore, users can borrow millions of dollars worth of currency without having liquidity before using it on its own.

Research Writer ǀ Blockchain Enthusiast ǀ Petroleum Engineer ǀ Part-time Journalist