Money on Chain has taken the next step in bringing the tools for decentralized finance to the Bitcoin blockchain with the launch of a liquidity mining program for BTC users. The platform will incentivize Bitcoin holders to convert their BTC to BPro tokens by offering regular payouts in the form of Money on Chain’s self-titled MoC token.
Money on Chain: Decentralized Finance for the Bitcoin Blockchain
Money on Chain is a blockchain startup which focuses on bringing DeFi to Bitcoin by leveraging BTC’s second-layer Turing-complete sidechain, RSK, to bequeath the world’s first cryptocurrency with the same smart contract capabilities as Ethereum.
The new MoC token adds to an existing suite of DeFi products that are compatible with Bitcoin, including the Bitcoin-collateralized stablecoin known as Dollar On Chain (DoC). The BPro token already generates passive income in the form of fees from traders who use the Money on Chain platform, and entitles traders to free leverage in their Bitcoin trades – backed by DoC token holders.
The MoC Liquidity Mining program commenced on December 7, with 14,000 tokens initially distributed among BPro holders. Holders of the new token will gain a say in how the MoC program progresses, with governance rights conferred to users of the DeFi platform.
Money on Chain’s Bitcoin DeFi products are decentralized and non-custodial, meaning users don’t have to give up their private keys to participate in leveraged trading. Money on Chain’s co-founder Manuel Ferrari said bringing DeFi products to Bitcoin holders was a priority. Ferrari said:
"In designing Money on Chain, we’ve given special consideration to bitcoin hodlers. As such, we’ve implemented various incentives as a way of making it more attractive for users to contribute their collateral to the Money on Chain ecosystem."
Ethereum-Heavy DeFi Spreads to Bitcoin
The DeFi explosion in 2020 precipitated one of the biggest trends in the blockchain space, resulting in just under $15 billion being locked into various DeFi applications in less than 12 months.
Until now, the majority of DeFi activity has been based solely on Ethereum (ETH), which pioneered the concept of Turing-complete blockchain smart contracts. The pull of DeFi may have contributed to the +350% increase in the value of ETH in 2020 alone, yet this market domination has not been without its downsides. Ethereum transaction fees hit a record high in the summer of 2020, as users rushed to take part in the yield farming sensation fueled by such decentralized applications (dApps) as Uniswap.
The urge to see Bitcoin used in the dApps which comprise DeFi has already seen billions of dollars worth of BTC ‘wrapped’ and used on various Ethereum dApps.