The bitcoin defi landscape is growing, and Money on Chain, best known for building and deploying one of the earliest bitcoin-backed defi protocols, is at the heart of the expansion. Its team has announced plans to introduce three new products to the decentralized finance ecosystem: a stablecoin, a leveraged asset giving holders exposure to movements in the price of RIF, and RPRO, a token that mirrors the RIF token price and rewards holders a share of platform fees.
Interestingly, the USD-pegged stablecoin RDOC is collateralized by RIF tokens, which explains its alternate title – the RIF dollar. Money on Chain insists that deploying RDOC will provide a stable means of asset transfer without the need for fiat backing, with users able to buy RDOC directly within the newly-developed “RIF on Chain” defi platform using RIF tokens. RDOC can be transferred and stored in compatible wallets just like any other cryptocurrency; it can also be used to purchase products from the forthcoming RIF Marketplace.
The leveraged asset, meanwhile, will grant users exposure to movements in RIF’s price. Known as RIFX, it enables holders to hypothetically double their percentage gains as the price of RIF goes up. Contracts in these leveraged positions are scheduled to renew every 30 days in the initial version of the platform.
The RIF on Chain platform will also feature a third asset known as RIFpro (RPRO), which mimics the RIF token price and lets holders earn a passive income on RIF tokens by collecting some of the fees associated with platform transactions. Like RDOCs, RPROs can be transferred and stored in accordant hardware wallets.
Bitcoin Defi Products Proliferate
The latest news follows Money on Chain’s launch of a decentralized stablecoin protocol on RSK, the Bitcoin-powered smart contract, last December. The majority of defi apps currently being built on the Bitcoin network originate from RSK technology.
“It’s thrilling to experience how quickly the defi ecosystem has been growing, launching more products and achieving broader adoption,” said Diego Gutierrez Zaldivar, CEO of RSK’s parent company IOV Labs. “We are excited that top defi technologies such as Money on Chain are choosing the RIF token and the RBTC blockchain to evolve and position their products in this high growth competitive environment.”
MakerDAO is no longer the nerve center of the decentralized finance ecosystem, even if its Dai token remains the best-known collateralized stablecoin solution. And while Ethereum undoubtedly remains the industry standard for defi generally, Bitcoin sidechains like RSK and Liquid are presenting a compelling alternative, with Bitcoin’s security and network effects attracting interest from community members.
Other companies seeking to build out the bitcoin defi ecosystem include Atomic Loans, which is in the process of creating a product that operates on the Bitcoin blockchain directly, without requiring complex synthetics on other blockchains. The startup, based in Canada, was recently at the center of a $2.45 million seed round. Meanwhile, Lightning Network continues quietly building out its layer two bitcoin payment system, led by Lightning Labs and bolstered by the support of high profile backers such as Square’s Jack Dorsey.