Money on Chain (MOC) is among the first bitcoin-collateralized DeFi solutions with various features. It allows bitcoin holders to earn a passive income from staking their BTC. It also provides bitcoin-collateralized stablecoins to users who wish to mitigate volatility risks, and it has a bitcoin leverage asset for those who want to increase their long position exposure.
Now, by extending its technology to the RIF ecosystem, MOC also provides a foundation element for the creation of a DeFi ecosystem backed by RIF tokens and deployed on the RSK network.
The Three Main Assets of RIF on Chain’s DeFi Platform
Upon launching, the ROC platform will consist mainly of three assets. They will interact with each other, even though they’ve been developed to serve different purposes.
- RIF Dollar (RDOC) – an asset-backed stablecoin that’s 1:1 pegged to the US Dollar and entirely collateralized with RIF tokens.
- RIFpro Token (RIFP) – this is the cornerstone of the ROC ecosystem, enabling the minting of RDOC and RIFX using a token staking model.
- RIFX – a leveraged trading asset with an exposure to the movements of the RIF token price.
To interact with the ROC platform, the user needs to have RIF tokens in a hardware wallet that’s compatible. Examples include Nifty or Metamask. Users can purchase RIF tokens on exchanges such as Bitfinex, Bithumb, KuCoin, and others.
How Does The System Work?
RDOC stablecoins are created whenever there is a predetermined amount of RIFpro (RIFP) staked in the platform.
This doesn’t mean that all users must personally stake RIFP to get RDOC. It simply means that RIFP must be staked before any RDOC is created and made available to be acquired.
Hence, whenever the minimum threshold of RIFP that has to be created is met, the platform will automatically mint RDOC so users can acquire them. Put simply, RIFP tokens are a critical component for the minting of RDOC.
The essence of RIFP is to enable RIF token holders to earn a passive income from the fees generated by users who interact with the platform.
The RIFX, on the other hand, is a leveraged product that is set to renew every 30 days. It is intended to provide traders and speculators with a mechanism to leverage up their exposure to the price. It has a fixed leverage multiplier of 2X at the beginning of each contract.
However, this might vary throughout the 30-day cycle depending on variables, including the amount of RDOC stablecoins available and changes to the price of RIF in the market. Naturally, those who use it would have to pay an interest rate for the borrowed amount.
In summary, RIFP tokens will be the cornerstone product of the entire platform. They will benefit from the fees paid by those who purchase RDOC and the interest rate paid by those who use RIFX. Also, RIFP tokens absorb a small part of the volatility of the stablecoins, which will supposedly benefit them in the long run if the price of RIF goes up, of course.
How To Work With The System?
As mentioned above, the first step for a user is to obtain RIF tokens and send them to Nifty or MetaMask. When using the latter, RIF holders must be sure to have the proper configuration of the RSK network for transferring the RIF tokens to the application. Help can be found here.
As the last step, the user needs to allow MetaMask or Nifty to interact with the ROC platform by approving the automate connection of the wallet with the platform.
2020 is the year for DeFi and RSK, the smart contract platform on top of Bitcoin is making without a doubt a significant contribution to the ecosystem.