Money on Chain - Bitcoin-Collateralized Stablecoin

[maxcarjuzaa]

I will follow up this project and see how it goes, I can only wish the team a good success. Another project has a similar mode the USDQ Plantinum-QDAO. Technology is innovative and keeps evolving. 

Thanks for your question, I am Max, cofounder of MoneyOnChain

According to their white paper the model of QDAO is the same as maker DAO, we have a different model. One of the main differences is that in our model the peg is guaranteed by the smart contract.

Another difference is that we have different actors with different needs interacting in the ecosystem.

For example,

Alice is a long term bitcoin holder willing to earn a passive income  in her bitcoins, so she buys the BitPRO, the BitPRO gives Alice a passive income in her bitcoins and a little bit of leverage, that means that in the long term, when the price of bitcoin goes UP Alice will have more Bitcoins.

Bob Needs a fix amount of USD to buy a new car next month, so Bob sends the equivalent amount of usd in bitcoin to the smart contract to buy the stable coin. He does not need to put any collateral, he simply sends the amount of dollars in bitcoins he needs to the smart contract and gets  that amount in DOC, (Dollar on Chain) our first stable asset.

Dave is a trader, he thinks the price of bitcoin will go UP, so he buys a leveraged long position using the platform and pays an interest for that leverage

So now Dave is assuming most of the risk, Alice is earning the interest that Dave pays and Bob has the stability provided by the system

In the following weeks we are going to open our first alfa product on the RSK testnet

Stay tunned

[maxcarjuzaa]

BTC collateralized and calling it a stablecoin? The logical inference would be BTC = Stablecoin.
Does not compute
BTC is a very volatile asset. How is an asset collateralized on it anyway remotely stable, unless you're using another asset to hedge against the volatility or you've got a perfectly, functional crystal ball

I am also having a hard time understanding this idea because if Bitcoin is mortgaged, the value of stablecoins can be very volatile because we cannot be sure which price will be stable in this market. This is a new project but the information in this project is not complete so hopefully they can answer investors' questions here. Although it took me more than 5 minutes to understand this project, I still could not understand how it works

We use over collateralization to maintain the peg, the whole solution is implemented in a smart contract, so there is no counterpart risk

We are going to publish our white paper and Alfa product on the test net in the following weeks, the mathematical model behind MoneyOnChain is complex and not so easy to understand. Said that, the features of the products are crystal clear and the platform very very easy to use.

DOC: Dollar on chain, usd pegged coin backed by bitcoin, the peg is guaranteed by the smart contract
BitPro: A token for bitcoin Holders, it provides passive income and a little bit of leverage on your bitcoins
BTCX: A leveraged long position on the price of bitcoin. (only 2x leverage in the alfa version)

The full version will have BTCX long and short leveraged position on the price of bitcoin at any leverage  you choose (logic limits will exist) increasing the passive income for the BitPro holders.   
 

[gomeZLTC]

I will follow up this project and see how it goes, I can only wish the team a good success. Another project has a similar mode the USDQ Plantinum-QDAO. Technology is innovative and keeps evolving. 

Thanks for your question, I am Max, cofounder of MoneyOnChain

According to their white paper the model of QDAO is the same as maker DAO, we have a different model. One of the main differences is that in our model the peg is guaranteed by the smart contract.

Another difference is that we have different actors with different needs interacting in the ecosystem.

For example,

Alice is a long term bitcoin holder willing to earn a passive income  in her bitcoins, so she buys the BitPRO, the BitPRO gives Alice a passive income in her bitcoins and a little bit of leverage, that means that in the long term, when the price of bitcoin goes UP Alice will have more Bitcoins.

Bob Needs a fix amount of USD to buy a new car next month, so Bob sends the equivalent amount of usd in bitcoin to the smart contract to buy the stable coin. He does not need to put any collateral, he simply sends the amount of dollars in bitcoins he needs to the smart contract and gets  that amount in DOC, (Dollar on Chain) our first stable asset.


Dave is a trader, he thinks the price of bitcoin will go UP, so he buys a leveraged long position using the platform and pays an interest for that leverage

So now Dave is assuming most of the risk, Alice is earning the interest that Dave pays and Bob has the stability provided by the system

In the following weeks we are going to open our first alfa product on the RSK testnet

Stay tunned

thanks for the explanation. but, how about to make some illustration graphic on the whitepaper, it will make it more easy to understand.

waiting for the whitepaper

[sapta]

thanks for the explanation. but, how about to make some illustration graphic on the whitepaper, it will make it more easy to understand.

waiting for the whitepaper

Yes, info-graphic is a good idea to explain it in a simple way (even though max said that the process is kinda complex). The message will be sent to the team though so maybe, they'll create one for the public.

[gomeZLTC]

thanks for the explanation. but, how about to make some illustration graphic on the whitepaper, it will make it more easy to understand.

waiting for the whitepaper

Yes, info-graphic is a good idea to explain it in a simple way (even though max said that the process is kinda complex). The message will be sent to the team though so maybe, they'll create one for the public.

that is good sir

is this project will have any bounty program in this near future?

[perri]

thanks for the explanation. but, how about to make some illustration graphic on the whitepaper, it will make it more easy to understand.

waiting for the whitepaper

Yes, info-graphic is a good idea to explain it in a simple way (even though max said that the process is kinda complex). The message will be sent to the team though so maybe, they'll create one for the public.

Yes sir yes 
Ye ye ye, please create it one for us to make this complex thing more understandable.

Is there any updated info for the test-net, by the way?
Then, do we have the full model on the test-net?

[gomeZLTC]

in my opinion, an animated infographic would be better. it will be more clearly than just an image.

[jillscarbrough]

in my opinion, an animated infographic would be better. it will be more clearly than just an image.

This one?
https://www.youtube.com/watch?v=aGkFOIYev0M


The keyword of the explanation above is: (IMO)

So now Dave is assuming most of the risk, Alice is earning the interest that Dave pays and Bob has the stability provided by the system

All that thing are related (bolded one), bundled on the system (in this case - smart contract - RSK), That's why they have something that called as "Target Group," Each group will related and complete other group needs. CMIIW

The target group of Dollar On Chain (DoC) are risk averse individuals. The peg against the dollar guarantees stability.

BitPro tokens  are interesting for bitcoin holders that are not interested in the short-term. It will allow BTC holders to earn a rent on their position, and gain free leverage.

The DEX is oriented for traders seeking to maximize earnings on leverage on the derivatives exchange market.

Source: https://moneyonchain.com/solution/

[gomeZLTC]

yes, something like that. i do not realize it exists on their web, thanks for sharing it also for your explanation.

[Douglasy]

If the coin collateralized with btc, it can not refer to stablecoin since btc price is not stable..that is simple.

[jillscarbrough]

yes, something like that. i do not realize it exists on their web, thanks for sharing it also for your explanation.

My pleasure!
I'm so lucky 'cause I find that video right on the main page of their web.

If the coin collateralized with btc, it can not refer to stablecoin since btc price is not stable..that is simple.

We're talkin' about a system.
Where a few things bundled on the platform...

Their first Stablecoin is Dollar on Chain (DoC), where the price will peg to the US Dollar...

[Bowtiesarecool]

BTC collateralized and calling it a stablecoin? The logical inference would be BTC = Stablecoin.
Does not compute
BTC is a very volatile asset. How is an asset collateralized on it anyway remotely stable, unless you're using another asset to hedge against the volatility or you've got a perfectly, functional crystal ball

You're absolutely right! I super agree with you on that point.

So, this is what 'em say on their web:
-I'm just quoting the explanation on their web related to your above post-

To solve Bitcoin’s volatility problem, we will provide a Bitcoin-collateralized stablecoin using a three-party system:

We strip Bitcoin’s volatility into two separate tokens:

The Dollar on Chain (DOC), is pegged to us Dollar for risk-averse individuals

The BitPRO, a token for risk-propense Bitcoin holders seeking a passive income in BTC

The DOC tokens will be stable and pegged to the US dollar, such that each DOC token will have a value of USD 1. As these tokens will be entirely stable, they are a volatility-free asset that will perform the three functions of money mentioned above: a medium of exchange, unit of account, and a store of value.
................................................and so on

Source: https://moneyonchain.com/solution/

Sounds like another Rube Goldberg contraption.
So, for the risk-averse, they have the option to peg this BTC-collaterized stablecoin to another stable coin called DOC, while the adventurous are just sticking to BTC by another name, Bitpro. There are numerous stable coins to chose from already, what makes DOC any different?

[Maritu]

BTC collateralized and calling it a stablecoin? The logical inference would be BTC = Stablecoin.
Does not compute
BTC is a very volatile asset. How is an asset collateralized on it anyway remotely stable, unless you're using another asset to hedge against the volatility or you've got a perfectly, functional crystal ball

You're absolutely right! I super agree with you on that point.

So, this is what 'em say on their web:
-I'm just quoting the explanation on their web related to your above post-

To solve Bitcoin’s volatility problem, we will provide a Bitcoin-collateralized stablecoin using a three-party system:

We strip Bitcoin’s volatility into two separate tokens:

The Dollar on Chain (DOC), is pegged to us Dollar for risk-averse individuals

The BitPRO, a token for risk-propense Bitcoin holders seeking a passive income in BTC

The DOC tokens will be stable and pegged to the US dollar, such that each DOC token will have a value of USD 1. As these tokens will be entirely stable, they are a volatility-free asset that will perform the three functions of money mentioned above: a medium of exchange, unit of account, and a store of value.
................................................and so on

Source: https://moneyonchain.com/solution/

Sounds like another Rube Goldberg contraption.
So, for the risk-averse, they have the option to peg this BTC-collaterized stablecoin to another stable coin called DOC, while the adventurous are just sticking to BTC by another name, Bitpro. There are numerous stable coins to chose from already, what makes DOC any different?

The difference is that it is the first stablecoin with bitcoin as collateral with focus on decentralization and with every transaction made through smart contracts.

[jillscarbrough]

~

Sounds like another Rube Goldberg contraption.
So, for the risk-averse, they have the option to peg this BTC-collaterized stablecoin to another stable coin called DOC, while the adventurous are just sticking to BTC by another name, Bitpro. There are numerous stable coins to chose from already, what makes DOC any different?

What makes this DOC different from others?
As users, off course, my view wouldn't be much different as yours. Moreover, the platform doesn't exist, and we both don't test it yet. (-Even if I try to answer, it's just my own conclusion from what I've read-)

But at least, their CEO has been post some short explanation above your post, and off course, they have more info on their web. Unfortunately, their white-paper doesn't publish yet. Let's wait for the white-paper!

[gomeZLTC]

yes, something like that. i do not realize it exists on their web, thanks for sharing it also for your explanation.

My pleasure!
I'm so lucky 'cause I find that video right on the main page of their web.

If the coin collateralized with btc, it can not refer to stablecoin since btc price is not stable..that is simple.

We're talkin' about a system.
Where a few things bundled on the platform...

Their first Stablecoin is Dollar on Chain (DoC), where the price will peg to the US Dollar...

am not lucky enough to find it. i swear i open their web, as i say before i don't realize it he he

[TimeTeller]

~

Sounds like another Rube Goldberg contraption.
So, for the risk-averse, they have the option to peg this BTC-collaterized stablecoin to another stable coin called DOC, while the adventurous are just sticking to BTC by another name, Bitpro. There are numerous stable coins to chose from already, what makes DOC any different?

What makes this DOC different from others?
As users, off course, my view wouldn't be much different as yours. Moreover, the platform doesn't exist, and we both don't test it yet. (-Even if I try to answer, it's just my own conclusion from what I've read-)

But at least, their CEO has been post some short explanation above your post, and off course, they have more info on their web. Unfortunately, their white-paper doesn't publish yet. Let's wait for the white-paper!

The explanation of the CEO by giving a simple example gives a notion that this platform might be worth watching for.
Hopefully, the actual scenario will be as simple as that. Because most of the time, there are so many factors in play when the project comes to life.
We can speculate if the project will going to hit it in the crypto community once we see their platform in operations.

[jillscarbrough]

What makes this DOC different from others?
As users, off course, my view wouldn't be much different as yours. Moreover, the platform doesn't exist, and we both don't test it yet. (-Even if I try to answer, it's just my own conclusion from what I've read-)

But at least, their CEO has been post some short explanation above your post, and off course, they have more info on their web. Unfortunately, their white-paper doesn't publish yet. Let's wait for the white-paper!

The explanation of the CEO by giving a simple example gives a notion that this platform might be worth watching for.
Hopefully, the actual scenario will be as simple as that. Because most of the time, there are so many factors in play when the project comes to life.
We can speculate if the project will going to hit it in the crypto community once we see their platform in operations.

Yeah, I hope so.
The smart contract did the whole complex process, and the platform gave us the rest (simplest things to do - click & click )

am not lucky enough to find it. i swear i open their web, as i say before i don't realize it he he

 

[ajaymukund]

Currently, there are also big competitors such as Paypal, Visa, Mastercard and some other credit businesses serving this. The big problem for them is that each exchange costs up to 6% or 7%.
The issue of cost is still one of the things that makes traders unwilling to trade on these platforms. So how will your project solve this fee problem to attract more customers?

[jillscarbrough]

Currently, there are also big competitors such as Paypal, Visa, Mastercard and some other credit businesses serving this. The big problem for them is that each exchange costs up to 6% or 7%.

 I'm not really sure about which part you were comparing...

The issue of cost is still one of the things that makes traders unwilling to trade on these platforms. So how will your project solve this fee problem to attract more customers?

We will issue a third token, the Money On Chain Token (MOC). The MOC’s will have three uses:

MOC holders will have a discount when paying the fees for the use of the platform using MOCs
They will have the power to vote and veto the platform updates.
The MOC Holders will be able to run an Oracle that will provide BTC prices and other data to the platform and get a reward for doing this.

 Maybe this is one of the solutions you are looking for, but that was not in general as a solution, it's more like a benefit, indeed.

[kalacC]

I just curious about this, as per information on your web, it said moc would use as an incentive for those who run moc nodes. So, my stupid question is, how is the models will be? are this will be similar to staking or master node that needs collateral to run the node? or?

Where is the answer for a newbie question? Are newbie allowed for ask here?