DeFi On Bitcoin: Financial Inclusion & Services Through RSK Technology

Published on: 2 January, 2020

Decentralized Finance (DeFi) is the movement that leverages decentralized networks to transform old financial products into trustless and transparent protocols that run without intermediaries. DeFi systems will enable a wide range of people (both technical and non-technical) to access financial products without intermediation costs.

Money On Chain, the first BTC-backed stable coin, has recently announced its Mainnet launch and is planning to build a wide range of financial services through RSK´s tech stack.

The Money On Chain ecosystem involves different tokens. On the one hand, there will be a Dollar on Chain, or DOC, which remains pegged to the US Dollar at all times. On the other side, we have BPRO. It is a new token for those who seek passive income in Bitcoin and are risk-inclined. Finally, we have the MOC token. Let´s analyze the purpose of each token:

1 – The Dollar on Chain (DOC) is a stable token that will be pegged to the US dollar with a value of USD 1 per DOC. This makes it ideal for individuals who are averse to the risk of Bitcoin and seek stability in the volatile cryptocurrency environment.

2 – BPRO is a token for Bitcoin holders that will absorb the unwanted Bitcoin risk from the DOC. It will pass part of this on to the leveraged Bitcoin operations exchange, earning BPRO holders a passive income, while also keeping some free leverage.

3 – The MOC token will have three functions:

a – MOC holders will have a discount when paying the fees for the use of the platform using MOCs.

b – MOC holders will have the power to vote and veto the platform updates.

c – MOC is used as an incentive for those who run “MOC” nodes and as an incentive to BitPro holders.

Bitcoiners can now use decentralized financial services to market, grant and take loans, as well as creating stable currencies using Bitcoin. For further information on how MOC works, we invite you to visit the following video.

Regarding scalability, as detailed in RIF´s post, in the upcoming months, MOC will integrate RIF Lumino into its protocol. This will provide scalability for the Dollar on Chain token, which is crucial to achieve adoption. Launching DOC on the Lumino payments network will allow thousands of instant transactions with near zero fees (a crucial aspect for any DeFi solution).

As we keep on growing in our journey to financial inclusion, we provide the technological solutions that will enable mass adoption. As recently stated by Diego Gutierrez Zaldivar: “We want this system to serve the needs of people who aren’t being served by the traditional financial system in Latin America”.