What Is Genshiro?
Genshiro (GNS) Explained
Genshiro consolidates various functions and products of the DeFi world — such as lending, synthetic assets, margin trading and decentralized exchanges (DEX) — into a single platform. Genshiro also enables cross-chain interoperability, which bridges blockchain networks and creates opportunities for multi-currency DeFi tools.
The Genshiro team is also releasing a similar platform called Equilibrium on the Polkadot network. Genshiro aims to be Equilibrium’s “canary network,” meaning that new code will be shipped and tested on Genshiro first before going live on Equilibrium.
GENS is the cryptocurrency used by the Genshiro ecosystem and allows users to help govern the platform, pay for transactions, pay interest fees when borrowing funds and receive as reward for lending cryptocurrencies or for providing liquidity
Who Created Genshiro?
Genshiro’s founder and CEO is Alex Melikhov, whose career spans roles in engineering and applied mathematics. Prior to his current role, he founded the Changelly cryptocurrency exchange in 2016.
Originally, Melikhov and his team developed Equilibrium to operate on the Ethereum blockchain. However, they migrated to EOSIO and launched the first EOS-based decentralized stablecoin, EOSDT. The move to Polkadot was aimed to expand on the functionality and scalability of their platform’s capabilities, which led to both the current models of Equilibrium and Genshiro.
In order to fund the project, Genshiro launched a cat-themed NFT collection on Rarible, which raised 310 ETH toward their Kusama parachain slot bid. It also launched a parachain auction for KSM holders. Finally, the Genshiro team has received funding from well-known venture capital names such as KR1 and Block Dream Fund.
How Does Genshiro Work?
Genshiro enables transactions using a variety of crypto assets, including tokens, stablecoins and synthetic assets like financial derivatives. There are four primary user roles in the Genshiro ecosystem:
- Lenders stake their crypto assets in lending pools and get rewards in crypto.
- Borrowers borrow assets from lending pools with pre-defined interest rates on their loans.
- Bailsmen secure loans by bearing the risk of liquidation if borrowers were to default on their loans. In return, Bailsmen earn additional premiums.
- Traders exchange crypto assets through Genshiro’s DEX. Traders that trade on margin also become borrowers.
Genshiro takes a unique approach to ensuring liquidity on its platform through the use of Bailsmen. Bailsmen help mitigate the risk of liquidation and help protect the funds that lenders deposit in lending pools.
Finally, Genshiro’s cross-chain interoperability enables users to transfer funds between various blockchains with little to no friction.
Why Does GENS Have Value?
Those wishing to participate in the Genshiro ecosystem must first acquire a certain amount of GENS tokens.
GENS is a governance token that allows holders to vote on decisions that guide the network. It is also used to pay for transaction fees when trading, to pay interest fees for borrowed funds, and as liquidity for bailouts and collateral. Finally, rewards are distributed in the form of GENS tokens to those who stake their GENS tokens or provide liquidity to the lending pools.
Like many other cryptocurrencies, the supply of GENS is capped, meaning that according to Genshiro’s software rules there will only ever be 1.2 billion GENS tokens.