Base tokens of the EYWA Ecosystem

Purpose and structure of the EYWA ecosystem crypto-assets, their applications and opportunities to generate income. Read today’s article to find out more.

Structure and purpose of the EYWA ecosystem base tokens: EUSD stablecoin and EYWA token

There are two types of cryptocurrency in our project: EUSD stablecoin and EYWA token. Harmony One is the native blockchain for both assets. As we closely monitor questions from our community, we have noticed that many people ask the following question: “Why Harmony?” Let’s start with this question.

Why Harmony?

Fast blockchain with high degree of decentralization

Harmony One uses 1000 nodes, 800 of which are deployed by members of the Harmony community. In addition to being highly decentralized, Harmony is a fast blockchain and, according to the Harmony team, it will be able to process up to 1,000,000TPS in the future. At the moment of writing this article, the TPS of the Harmony blockchain is 2000 per shard (4 shards in total) and block finality equals to less than 2 seconds.

Integrated VRF function

Roll-DPoS consensus is used to validate blocks in the EYWA Oracle Network and select epoch participants. This consensus implies that the validators who will take part in an epoch are determined randomly by lottery. Given this feature of the Roll-DPoS consensus, Harmony One network is very convenient because it has a built-in?VRF (Verifiable Random Function).

Low transaction costs

Another advantage of the Harmony blockchain is the low transaction cost . At the time of writing, the average cost of all the transactions on the Harmony network was $0.000001.

Having looked at the native network of EUSD stablecoin and EYWA Token, we shall move on to the crypto-assets themselves. Let’s start with the EUSD token and look at how it is structured and what it is used for.

EUSD stablecoin

EUSD is the EYWA ecosystem stablecoin that is available on all the networks that are supported by the EYWA Cross-chain Data Protocol. Users can move EUSD across blockchains of the EYWA ecosystem without transaction fees (EYWA project does not charge transaction fees, users only pay network fees in which the activity takes place). EUSD is backed by stablecoins from blockchains such as Ethereum, BNB, Polygon, Avalanche, Fantom and Solana.

Note:?EUSD is the?LP-token?of the EYWA cross-chain pool and a native token of the Harmony blockchain. More information can be found?here.

Features of the EUSD stablecoin

• EUSD can be converted into any stablecoin in the?Cross-chain stablecoin pool?which secures EUSD.
• EUSD can be generated from any stablecoin which acts as a collateral and is in the Cross-chain stablecoin pool.
• EUSD can be moved among blockchains supported by the?EYWA CDP?with no transaction fees.
• EUSD is the link between the Cross-chain liquidity pool and stablecoins of the blockchains supported by EYWA.
• EUSD is the native stablecoin of the Harmony One blockchain. Users of the Harmony One ecosystem can use EUSD to participate in various DeFi activities.

So now you know how EUSD stablecoin is structured and secured. Next, we shall discuss what problems the EYWA project’s stablecoin solves and what opportunities it provides.

EUSD is a liquidity fragmentation solution

With EUSD, any project can trade its token with all of the blockchain stablecoins available in the EYWA ecosystem. This approach allows projects to be present on multiple blockchain networks and keep all the liquidity in one place. This is completely different from themultichain approach, where developers have to implement the same logic across different networks. Additionally, in themultichain approach, a separate pool must be created in each blockchain. Such liquidity “spreading” leads to higher volatility and price impact.

Flexibility to choose a blockchain

When a project has the ability to quickly and securely move its token among different blockchains, it has flexibility of choice. Developers can choose the blockchain that suits the required characteristics of the project, while access to other networks is provided by EYWA.

These are not all the possibilities that EUSD offers. Holders of the EYWA’s Stablecoin will be able to generate income. We will tell you how to do this a little later. For now, let’s move on to the EYWA token.

EYWA Token

EYWA is a native and fungible token which acts as the means of decentralized exchanges for users of the EYWA protocol. EYWA tokens have several purposes, characteristics and applications, which we will discuss below.

• EYWA as a security tool?— validators of the EYWA Oracle Network must stake a minimum of 100,000 EYWA tokens (each validator has a separate staking pool with validator tokens and delegated EYWA tokens) as a collateral. The validator will be rewarded for the correct operation of the node or fined if other participants notice that the node is inactive. If fraudulent activity is detected, the collateral of the dishonest validator can be written off in full.
• Ability to participate in the EYWA DAO voting?— EYWA tokens allow holders to participate in the EYWA DAO voting. EYWA holders will be able to define the direction of the project as well as manage the EYWA Cross-chain Liquidity Protocol and EYWA Oracle Network parameters.

Note:?EYWA tokens will have different voting power — the longer the token lock-in period in the DAO is, the higher the voting power becomes.

• EYWA token delegation?— investors who do not deploy a node themselves can delegate their tokens to a validator they trust. This will generate additional income and increase the network security.
• EYWA token rewards?— users will receive rewards in EYWA tokens for validating cross-chain calls, managing the protocol and providing liquidity.
• Transaction fees?— EYWA tokens can be used to pay fees for cross-chain calls.

Now you know how EYWA crypto-assets work. Let’s take a further look at how a user can generate income using EYWA Earn tools.

How EYWA Earn allows users to generate extra income

EYWA Earn?is a set of tools that allows users to generate extra income. There are a total of three options available, each of which will be discussed in detail below.

1. Staking

Users can stake EYWA tokens to support the security of the decentralized EYWA Oracle Network and earn rewards in EYWA tokens. There are two ways to generate income from staking:

• Users can delegate EYWA tokens to one of the validators. The delegated tokens earn a reward, part of which is taken by the validator in the form of a staking commission. The amount of the commission is determined by the holder of the node. You can choose the one whose terms and conditions suit you best from the list of validators.
• Users can deploy a node on their own. The minimum deposit for launching a node is 100,000 EYWA tokens. Node holders can accept delegated tokens from participants (up to 500% of their own staking position), which will allow them to make an additional income from commissions.

2. Cross-chain yield farming

For providing liquidity to the Cross-chain stablecoin pool, users receive EUSD, LP tokens from that pool. These EUSD tokens can be sent for farming to receive a reward consisting of two parts:

• Commissions for each transaction within the cross-chain pool.?Commissions are awarded in synthetic assets backed by stablecoins.
• Reward in EYWA tokens.?Users will be rewarded with EYWA tokens during the farming period. The amount of the reward will depend on the number of EYWA tokens staked.

3. EYWA liquidity farming

Users can provide liquidity to the EYWA-EUSD pool hosted by Harmony One and be rewarded in EYWA tokens. APY for farming EYWA liquidity depends on the number of EYWA tokens a user staked: the more EYWA tokens a user has in staking, the higher the APY.

The three options listed above are not all the opportunities to earn within the EYWA project. Users will be able to earn from?arbitrage?in the?Cross-chain stablecoin pool. The architecture of the Cross-chain stablecoin pool is based on the?Curve liquidity pool?and allows the exchange of stablecoins with the minimum slippage. In order for the stablecoins of different networks to be as close as possible in value, arbitrageurs are needed. They will keep the right price ratio and make money.

Conclusion

Every user and investor needs to understand how the tools they use work. For this reason, we covered the topic of EYWA crypto-assets and will continue to explain all the aspects of the project. To make sure you don’t miss the next article and to stay up-to-date, subscribe to our social networks!