EquiVal functions by integrating with existing DeFi platforms and using a combination of algorithmic analytics, market-data aggregation, and community vetting to deliver a consistent token valuation methodology.

It collects real-time data from various exchanges and platforms, runs this data through a transparent valuation algorithm, which factors in liquidity, market depth, transaction history, and on-chain metrics.

The system offers a validation mechanism where community feedback and expert audit verify these valuations to ensure transparency and accuracy.

EquiVal's API can be seamlessly incorporated into DeFi dashboards for instant use by platforms and their users.

EquiVal provides investors with a reliable and unified approach to valuing tokens, thus reducing the uncertainty and risk currently associated with DeFi investments.

This boost in trust can drive higher user engagement on platforms adopting the framework.

Moreover, it comes with built-in community auditing, which adds a layer of transparency that's currently lacking in existing solutions.

Developing EquiVal requires advanced software capable of processing large volumes of financial data and algorithms capable of integrating with various DeFi protocols.

The technical challenge involves creating a universally accepted standard that must be periodically audited and transparent enough for adoption by diverse platforms.

The cost to develop would be moderate, focused mainly on high-level engineering talent and infrastructure scale, while regulatory hurdles remain manageable without needing specific approvals.