Money On Chain and RSK are further making the case for BTC being the hub around which defi revolves, the future is looking bright for Bitcoin.
Money On Chain, known for its Bitcoin-collateralized, dollar-pegged stablecoin DoC, has announced the launch of a new decentralized token exchange called TEX. Built on Bitcoin smart contract sidechain RSK, TEX automates token swaps using smart contracts and gives traders access to assets such as DoC, defi token BPro, RSK’s RIF token, and bitcoin-pegged rBTC.
The DEX landscape is fiercely competitive, with the likes of Uniswap, Aave, 1inch, and Curve vying for market dominance, albeit all focused around the Ethereum ecosystem. With TEX, Money On Chain hopes to capture a piece of the action while providing traders with a high level of functionality and fair price discovery. The TEX will feature two types of orders, Limit Orders and Market Maker Orders, and is already available for trading.
Following the London Gold Fix Standard
The platform relies upon a unique trading mechanism inspired by the method favored at The London Gold Fix, which sets the value of gold twice daily. Order execution will occur on the basis of “ticks,” which occur every few minutes and enable the order book to facilitate price discovery before the match is made. The frequency of ticks is determined by market activity.
“The TEX is an important piece of the Money On Chain protocol,” says Max Carjuzaa, co-founder of Money On Chain. “The decentralized order book ensures a fair and transparent price discovery process and establishes a secondary market for tokens.”
“Decentralized exchanges, together with sovereign digital identities, will play a key role in Bitcoin’s future and provide the core tools for financial freedom,” added Diego Gutierrez Zaldivar, CEO of RSK’s parent company IOVlabs.
Bringing Defi to Bitcoin
Most of the projects focused on BTC-based defi have attempted to bring Bitcoin to decentralized finance by recreating it on Ethereum. This has entailed wrapping BTC (WBTC) or otherwise custodying it on the Bitcoin network (SBTC, renBTC, tBTC) before unlocking a corresponding amount represented on the Ethereum side. Money On Chain is taking a reverse approach, by recreating Ethereum services on Bitcoin, unlocking new capabilities for BTC-backed assets such as rBTC.
The demand for BTC as collateral for lending, borrowing, and stablecoin issuance is certainly high; almost $3 billion of BTC has been issued on Ethereum. If Money On Chain and RSK can capture even a fraction of that value within the BTC-anchored ecosystem they’ve constructed, it will strengthen the case for Bitcoin defi, and may lure Ethereum developers into the house that RSK has built.
Defi Loves BTC
The number of ways in which Bitcoin can be used to interact with defi protocols and generate yield continues to increase. From the long summer of yield farming, when WBTC was used to mint tokens on “dotfinance” projects, into the winter of reinvention, when only farming projects with the strongest fundamentals have survived, WBTC has been at the heart of the action. Money On Chain and RSK are further making the case for BTC being the hub around which defi revolves, the future is looking bright for Bitcoin.
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