Money On Chain (developed on RSK blockchain) is a bitcoin collateralized stablecoin ecosystem that generates a return on your bitcoin. Thanks to its Bitcoin-powered smart contracts, the Money On Chain brings to life three components: a stablecoin called Dollar On Chain, a HODL token BPro, and a leveraging token, BTCx token. The best part? It’s all backed by the Bitcoin blockchain.
RSK is the first Bitcoin sidechain and the most secure backed by over 50% of Bitcoin’s hashing power . In essence, it adds advanced smart contract capabilities on top of the Bitcoin mainnet. RSK brings the security and long-standing trust (or validation) for which Bitcoin is known, and integrates dapps and smart contracts. Crucially, the sidechain is much faster and easier to use than Bitcoin without compromising on security.
Better still, because the RSK sidechain supports smart contract execution, it improves usability and creates an environment where developers can experiment freely. In essence, this project takes the best of both worlds: smart contract platform and node-validated blockchain. It combines Bitcoin’s infamous security with Ethereum’s infinite machine.
Low risk, High Reward
Money On Chain is a Bitcoin collateralized stablecoin system featuring three components:
- the ‘Dollar On Chain’ stable coin
- the BPro token, which effectively tracks the BTC price
- a DeX and leverage trading service powered by BTCx token
Money On Chain may have solved the biggest problem facing Bitcoin mainstream adoption: volatility. Let’s see what that means in practice.
The Dollar on Chain, a Bitcoin-backed stablecoin, uses a trust minimized, decentralized system. The price tracks the US Dollar price through smart contracts. RSK presents its DoC coin as a way of circumventing Bitcoin’s volatility. It also serves as a stablecoin for smart-contract operations including loans and insurance deals.
But it’s much more than yet another secure stablecoin. The bitcoin collateral on the Money On Chain architecture can go one of two ways: the purchase of BPro “HODL and earn” tokens or the BTCx “long leveraged Bitcoin” tokens.
Generally speaking, thrill-seekers and traders can leverage their bitcoin operations with the BTCx token, whereas the BPro token guarantees the Dollar on Chain stablecoin’s stability. BPro absorbs volatility and shares it among other users who may be interested in leveraged trading.
In addition, sharing leverage has another benefit: providing BPro holders with passive income. There is more income to BPRo as it allows the receiving of MOC tokens–governance tokens–every day with the MOC Liquidity Mining Program. In fact, by holding BPro, you allow the protocol to mint Dollar On Chain tokens (DoC), the 100% bitcoin-backed stablecoin. As a result, traders and speculators can make leveraged bitcoin operations at a low cost.
Money On Chain DAO
Holders of the Money on Chain (MoC) token govern the entire Money on Chain system. RSK then runs the network of smart contracts underpinning the network which bitcoin miners guarantee. That means that ultimately, MoC is the only stablecoin worldwide that uses Bitcoin as collateral; and by extension, bitcoin miners secure the stablecoin.
Here’s a helpful graphic that sheds some light on the situation:
Last but definitely not least, let’s not forget that RSK is EVM compatible. Ethereum dapps can easily deploy on RSK as well, effectively transferring Ethereum-based dapps to the Bitcoin blockchain.
As the World’s Dapp Store, DappRadar continues to track and follow RSK’s progress. DappRadar offers a comprehensive user experience to dapp users, allowing them to seamlessly explore and track applications and assets. DappRadar will continue to follow RSK’s journey and exploration into Money On Chain.
Disclaimer — This is a sponsored article. DappRadar does not endorse any content or product on this page. DappRadar aims to provide accurate information, but readers should always do their own research before taking action. Articles by DappRadar can not be considered as investment advice.
