The new protocol, called Money on Chain, allows users to trade stablecoins backed by Bitcoin. The two tokens owned by the platform are DoC, which is anchored to the US dollar, and BPRO, which generates liabilities in Bitcoin.
It was announced that a new platform for anchored cryptocurrencies or stablecoins, backed by smart contracts using bitcoins, is already active in the RSK network. On Thursday, December 12th, the companies Money on Chain and IOVLabs confirmed the launch of the initiative, after having spent 11 months developing the new software.
It was explained that Money on Chain is a protocol that uses RSK smart contracts to generate stable cryptocurrencies (stablecoins), that is, those anchored to the price of another asset. In this way, crypto assets are collateralized by Bitcoin, thus providing decentralized financial services for BTC holders.
The protocol consists of two different tokens, which are called Dollar on Chain (DoC) and BitPRO (BPRO). The DoC token is anchored to the value of the US dollar, as are the stablecoins Tether, USDC and DAI. Users can send, receive or save in DoC when using the protocol, according to the company.
It should be remembered that DoC has a stable price with parity to the US, which makes it an ideal option for those with Bitcoin risk aversion seeking stability in the volatile environment of cryptocurrencies. On the other hand, BPRO is a token aimed at Bitcoin holders that absorbs the unwanted volatility of Bitcoin from DoC. In turn, part of this volatility is passed to the exchange of leveraged Bitcoin operations, thus giving BPRO holders a passive income for the loan at the same time as they receive small leverage for free.
It was also noted that Bitcoin holders can generate liabilities with their saved cryptocurrencies, by using the BPRO token. It should be noted that all users who purchase BPRO will receive a percentage of the fees charged by the Money on Chain platform. They will also receive interest rate gains and leverage on the price of Bitcoin.
It was reported that the developers, of both RSK and Money on Chain, had been working on the execution of this protocol for 11 months before the announcement. During that period of time, several simulations, performance tests, and two audits were conducted before the launch of the Alpha version to the market.
The idea of the creators of Money on Chain and IOVLabs is to generate a decentralized financial (DeFi) services platform for Bitcoin holders. Max Cajurzaa, CEO of Money on Chain, stressed that through this platform users can develop a loan, credit and trade market for Bitcoin users. It is worth mentioning that this idea has also been explored by Venezuelan entrepreneur Mauricio Di Bartolomeo, in his Ledn project.
The fact that this RSK network is using the Money on Chain protocol provides an opportunity for potential investors that do not like to take risks, since it owns two stablecoins that help users avoid the volatility of Bitcoin and other cryptocurrencies.
By Willmen Blanco
