Moremoney is a protocol for borrowing stablecoin while earning more than decent interest on liquidity pool tokens and other collateral assets. The protocol can convert the most popular tokens, e.g., ETH, WBTC, USDT, AVAX, into ibTKNs.
Simply put, with Moremoney, users can keep their position, keep earning yield, and still extract liquid cash even better at 0% interest rate.
- Interest-free loans
- All supported tokens are automatically yield-bearing tokens
- Use LPT as collateral while receiving farm reward in the form of self-repaying loans
- MONEY is our Ultrasound Dollar
- MORE is the Governance and fee sharing token
How It Works
- Alice holds single assets, e.g., AVAX, JOE, PNG, or Liquidity Pool Tokens (LPT) in a supported pair.
- She deposits these tokens into the Moremoney lending contract and requests a certain amount of $MONEY as a loan.
- The lending contract withdraws the LPT from her wallet and deposits it into a yield-earning contract, such as an incentive contract run by the DEX or a Yield YAK folding strategy for Benqi or Banker JOE.
- Then it mints the requested amount of $MONEY to Alice’s wallet, taking a minting fee
- The contract checks the minimum collateralization ratio for Alice’s account holds using a price oracle
- Alice can now trade $MONEY on exchanges, add liquidity to farm MORE, provide it as collateral for leveraged trading, etc.
PS: The protocol will automatically deposit collateral into a yield-bearing strategy, compound yield earned, or convert to MONEY to repay the loan.
What happens to yield?
After opening a collateralized debt position (CDP) on Moremoney, the collateral supplied is sent into the DeFi Wild, hunting for yield. And the yield/interest received is:
Compound interest: At launch, compounding is only supported for single assets like USDT, AVAX, ETH using Yield Yak. Rewards or interest earned by the collateral are sold for underlying collateral tokens, increasing the token balance in the position, the vault cRatio, and borrowing power.
Loan Auto-repayment: At launch self repaying loans are only available for the Liquidity Pool Token (LPT) collateral type. Farm reward collected by these tokens is converted to $MONEY and used to pay back users’ debt. In the future, self-repaying loans will also be available also for single assets.
MONEY is our ultrasound USD pegged stable coin, backed by interest-bearing collaterals, present and future yield. MONEY is issued when a debt position is opened and is destroyed permanently when debt is repaid.
More is the governance and fee distribution token for Moremoney. MORE will be distributed to liquidity providers and early adopters, Bonded for LP (POL).
Total Supply: 1,000,000,000
Unique Feature and Upcoming Products
Collateral Migration: Unlike on other lending platforms like abracadabra, on Moremoney, users can move collateral seamlessly between DeFi protocols or seamlessly from one yield yak strategy to another.
Liquidation Protected Loans: Protect your debt position against liquidation by buying insurance against liquidation (1, 3, or 6 months protection)
NFTs, NFTarts as collateral: Supporting peer-to-peer loans against different types of illiquid tokens.
Smart Liquidity: Kickstarting liquidity for new tokens on avalanche without incentives. Protocol-owned liquidity made easy. Seamlessly pool liquidity against MONEY by supplying only one token in the pool.
Money Bridge: is a cross-chain value transfer bridge. Deposit collateral and keep earning on Fantom and +++ while borrowing MONEY on Avalanche. Payback your Loan on Arbitrum and withdraw collateral on Fantom.
The Moremoney protocol has been audited by Peckshield and peer reviewed by several solidity developers. Still, as with any other DeFi protocol, the risk of smart contract bugs and exploits can’t be ruled out with absolute certainty.
Also, if your vault falls below the liquidation threshold, any third party has the right to pay off your debt in exchange for your vault’s collateral plus a liquidation fee. Compared to other borrowing protocols, it is safer to borrow MONEY from Moremoney because your collateral is constantly earning interest or debt is getting repaid when yield is harvested.
Free Alpha: When Launch?
Moremoney soft launch is happening on the 7th January 2022.