Money on Chain - A stable coin backed by bitcoin.
Our recent investment has to do with a concept that we - and probably a lot of others - have been anxiously waiting for. A stablecoin backed by Bitcoin and soft-pegged with the USD. Yes, this is a concept that exists on the Ethereum ecosystem for a while now with DAI and couple of others, but nothing existed purely on Bitcoin as of now.
Money On Chain, the company behind the project, has come up with a very interesting approach on how to create a BTC-pegged stablecoin that does not compromise on the security of the BTC network but also keeping the token mechanics simple enough to work. Of course everything remains trustless and non-custodial, true to the the whole ethos of the Bitcoin community.
Their architecture introduces 3 tokens, each one having a structural and functional role in the system:
⁃ The Dollar on Chain (DOC) is exactly what the name suggest. A coin with a stable value of $1.
⁃ BitPro. The BPRO tokens follow the volatility of Bitcoin’s price. BitPRO holders sell that volatility to traders looking for leverage in a decentralized derivatives exchange (DEX). Thus, BitPRO is even more volatile than Bitcoin, but it earns a passive income from leveraged operations made by traders in DEX.
⁃ MOC. A governance token that also functions as a gateway to participate in core system roles, like running an oracle (used for price feeds).
The existence of a token like this, opens up a whole new spectrum of opportunities and products to be built. From decentralized exchanges built entirely on BTC network, to derivatives market and payment apps. Or even completely digital banking. All of them running with BTC as the core network and the decentralized power it holds.
Since BTC does not have a proper smart contract functionality. The whole money on chain network is built on top of RSK. This makes the code 100% compatible with EVM but also inherits the security of the BTC network. The UX is flawless even for those not familiar with ETH alternatives.
The project is live and you can mint your DOC with your BTC in their platform that you can check out here
https://alpha.moneyonchain.com