Moremoney USD

MONEY

MONEY is an overcollateralized and yield-bearing stablecoin minted through the Moremoney protocol.

Risk Rating
Best
$1.03
-2.57%
Summary
What we like
Offers users a permissionless, decentralized method to gain exposure to a non-volatile store of value that is backed by its underlying collateral.
What we like less
MONEY is exposed to compounding DeFi risks as the underlying deposited collateral is redeposited on select partner protocols to earn additional yield.
What it means for you
MONEY offers you a great way to earn yield on stablecoins by staking to receive iMONEY. About 90% of interest paid by borrowers are distributed to iMONEY holders.
Information
Blockchain
  • Avalanche
Key Metrics
  • Fully Diluted Valluation: $62.2K
  • Total Supply: 60,645
  • Total Supply: 10,000,000
  • Volume (24H): $229.8
  • ATH: $3.99 (04/24/2023)
  • ATL: $0.50 (12/09/2023)
Risk Assessment
Best
Asset Strength

MONEY is a low-cap, fully collateralized asset. This asset is exposed to the underlying risks of Moremoney, a protocol rated as Watch out.

MONEY is a stablecoin that often trades more than 100bps off its peg to USD, making it a highly volatile store of value.

Asset Tokenomics

MONEY has an uncapped supply but has inflation control or burn mechanisms in place.

Asset Volatility

MONEY is a stablecoin that often trades more than 100bps off its peg to USD, making it a highly volatile store of value.

Dependencies

MoreMoney

Things to know about MONEY

How is MONEY created?

MONEY is a collateral-backed stablecoin created by Moremoney. It is backed by a basket of decentralized crypto assets including AVAX, sAVAX, ETH, and more. The lending platform currently supports isolated stablecoin borrowing. This means each collateralized debt position (CDP) is isolated and only at risk of its own liquidation. The value of MONEY is pegged to the USD and kept stable through an economic system of aligned financial incentives. MONEY is minted when users borrow against locked collateral and burned when debt is repaid. Another way to obtain MONEY is swapping through decentralized exchanges like Trader Joe and Curve.

What is MONEY used for?

MONEY is a price-stable asset that is mostly used as a hedge against volatility as it maintains a stable value of around 1 USD. Users need an alternative store of value and medium of exchange to navigate the highly volatile crypto markets. MONEY addresses this problem for crypto native users, as well as enables a wide range of financial activities including market making against another stable asset and levering up on crypto assets. MONEY holders can also stake in the protocol to receive iMONEY. The protocol distributes 90% of interest paid by borrowers to iMONEY holders.

How is the price of MONEY kept stable?

MONEY is an asset-backed currency that maintains a free-floating peg to the USD. This means that its value may differ from exactly 1 USD from time to time given current market conditions. MONEY follows the DAI overcollateralization model to maintain its peg via a combination of external market forces and internal economic incentives. The different market actors all acting in self-interest, work in concert to maintain MONEY's stability. Variable interest rates are one policy tool that is used to manage the circulating supply of MONEY. The interest rate is determined based on the USD peg on-chain. This means if 1 MONEY equals 1 USD, then the interest rate will remain at the base rate. If MONEY trades less than 1 USD, then the interest rate will go up to encourage borrowers to close out their loans and reduce the circulating supply. Vault owners also play an important role in maintaining the peg by minting MONEY when spikes in demand push its price above 1 USD, and conversely purchasing MONEY to pay down their debt at a discount when it trades below 1 USD. Arbitragers also contribute to maintaining the MONEY peg by taking advantage of price differences across various market makers. Lastly, if none of the above is sufficient for market actors to take corrective actions, then the protocol can implement forced redemptions to close-out loans. This will result in Moremoney buying MONEY to repay debt within the system.