How Equillar Uses On-Chain Collateral to Protect Investors
· 10 min read
Introduction
One of the questions I kept coming back to during the development and improvement of the Equillar contract is: what happens if the project fails or doesn't generate the expected income? Investors need some kind of guarantee — and even better if it's verifiable, trustless, and enforced by code. What I ended up building is an on-chain collateral mechanism that projects can use to back their payment obligations. This article explains how it works under the hood.