Bitcoin-backed Stablecoin Launches on RSK Testnet

A brand new Bitcoin-backed stablecoin, MoneyOnChain, has launched a fully-functional version of their platform on the Rootstock testnet.

MoneyOnChain claims to be the first decentralized stablecoin to be collateralized by Bitcoin. If you’re familiar with DeFi on Ethereum, the platform is a concept very similar to the Ethereum-based stablecoin project, MakerDAO.

Whereas smart-contracts work natively on the Ethereum platform, Bitcoin cannot handle smart-contracts directly. Instead, MoneyOnChain runs on Rootstock; a smart-contract enabling solution which runs on a Bitcoin side-chain.

MoneyOnChain is a multi-token system

The MoneyOnChain platform consists of 3 different tokens, each playing an important role in the ecosystem:

DOC

Dollar on Chain, or DOC for short, is the stablecoin of the MoneyOnChain system. It is pegged to the US dollar, and is designed to be used as a stable medium of exchange, unit of account, and store of value.

DOC is the equivalent of “Dai” in the MakerDAO system.

BPRO

BPRO is designed to retain exposure to Bitcoin volatility, and also pays an interest rate to BPRO holders. The token provides a small degree of leverage, offering slightly more than a 1:1 exposure to Bitcoin.

MOC

The MoneyOnChain token (MOC) is the governance token for the MoneyOnChain platform. It can be used to pay platform fees, and provides discounts for this. It is also the token which is used to vote for platform updates, as well as qualify oracles who provide BTC price feeds.

This would be the equivalent of the MKR token in MakerDAO.

Decentralized Exchange

The platform also features two distinct decentralized exchanges, with different uses.

The first is a decentralized exchange for the leveraged trading of BTC/USD swaps. All positions will be settled in Bitcoin, however exchange fees can be paid in MOC.

There will also be a token-focused decentralized exchange, designed for trading Rootstock-based assets.

The start of DeFi on Bitcoin?

With Rootstock opening up new opportunities for building on Bitcoin, this could just be the beginning of a whole new DeFi ecosystem.

Secured by the Bitcoin blockchain, MoneyOnChain is leading the way for projects to rise and compete with the more-established Ethereum DeFi world.

Click here to try out MoneyOnChain on the Rootstock testnet!

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