A startup has launched a leveraged token and a decentralized stablecoin on Rootstock (RIF), a sensible contract answer primarily based on Bitcoin (BTC)’s blockchain.
In accordance with an announcement shared with Cointelegraph on April 21, Bitcoin-based decentralized finance (DeFi) protocol MoneyOnChain launched the brand new merchandise on RSK’s sidechain.
A DAI competitor on Bitcoin’s blockchain
The brand new DeFi platform, dubbed RIF on Chain will characteristic RIF Greenback (RDOC), RIFX and RIFpro (RPRO). RPRO is a token that mirrors the value of RIF but additionally grants passive revenue by amassing a share of the charges generated by platform transactions.
RDOC is pegged to the US greenback and backed by RIF tokens. In contrast to competing Ether (ETH)-backed decentralized stablecoin DAI, RID {Dollars} could be acquired instantly by spending RIF with out making a collateralized debt place.
The RDOC stablecoin is minted each time there’s a specific amount of RIFpro staked on the platform. Lastly, RIFX is a token that provides publicity to RIF’s value fluctuations with leverage. Diego Gutierrez Zaldivar, CEO of IOV Labs — the agency behind Rootstock — defined:
“RIFX is a RIF leveraged decentralized lengthy place. Primarily based on an automatic good contract that renews each 30 days, the product has a leverage issue of 2X on the very starting of its lifespan and a variable leverage afterwards primarily based upon sure variables akin to the value of RIF token and the quantity of RDOC stablecoins within the ROC platform. Customers should pay attention to the dangers. […] The ROC platform, on this present model, doesn’t have a Margin Name notification.”
A Bitcoin-based system
Zaldivar identified that RIF is merge-mined with BTC and leverages Bitcoin’s blockchain for safety. He additionally defined that Bitcoin as an asset is built-in into the system and its function shall be expanded sooner or later:
“Bitcoins are locked on-chain and RBTC tokens are minted on the RSK community accordingly. RBTC (and thereby BTC) will function collateral for loans, as a pegging mechanism for RIF Greenback and extra.”
As Cointelegraph reported in March, lead developer at blockchain agency Kava Labs Ruaridh O’Donnell identified that there’s nice anticipation for the event of Bitcoin’s DeFi ecosystem. With regards to the broader DeFi area, it’s seeing nice developments at an astonishingly quick price.
As Cointelegraph reported earlier in the present day, Ethereum-based DeFi protocol Synthetix just lately enabled tokenized real-world property like Brent oil and the Nikkei inventory index. The CEO of blockchain agency Trustology just lately said that he believes DeFi protocols might quickly emerge because the world’s dominant liquidity pool if scaled successfully.
