Recent advancements in L2 technology and our own proprietary work allows defi.money to do what was truly impossible before; a digital currency designed to grow in unison with the future of finance.
Building on the foundation of crvUSD, $MONEY leverages innovations made in L2 scalability with custom in-house features; spanning from architectural optimisations to arbitrary smart contracts hooks, facilitating a truly autonomous protocol. Making it faster, safer, more capital efficient and user-friendly.
When combined, a profound architectural advancement is born...so to help the world understand what sets $MONEY apart let’s dive in 👇
Arbitrage Incentives | One of the most exciting features is the ability to support less liquid, more exotic asset types as collateral.
Precursor: The protocol built some significant gas optimisations at the contract level, combined with L2 reduced costs. Given LLAMMA’s fundamental structure (aka Automated Loan Protection), it endlessly offers profitable trades to arbitrageurs in order to manage collateral of individuals’ loans. A profitable arbitrage environment is crucial for keeping the peg of $MONEY and ensuring the protocol's general health.
The key items here is arbitrage; and for arbitrageurs to be profitable you need 2 things:
Profitable trade routing (which is what Automated Loan Protection provides).
Gas costs on your transaction to be lower than the profit you'd receive in that trade.
If it wasn't profitable - nobody would arbitrage! Simpler said:
Optimised costs allows arbitrageurs to become profitable sooner.
Arbitrage trades can happen more frequently, with less liquidity, and for smaller amounts.
Less on-chain liquidity is required for the protocol to excel!
End Result = A protocol that is safer with less liquidity, along with a higher loan-to-value (LTV) ratio. Aka anon can use his “exotic altcoins” to mint $MONEY.
Infinite Interest Rate Queries | For a CDP protocol to calculate its interest rates for collateral, it has to query data from every market it supports. Each time a new collateral is added, it exponentially increases gas costs for the query operations within the system. By unhooking this logic and pairing it with the cost savings with L2s you get infinite scalability = ability to add any amount of collateral types you’d like!
Stable & Efficient Long-Tail Oracles | Oracles are essential to any lending and borrowing protocol. They help facilitate timely and efficient liquidation of collateral by providing accurate, real-time pricing information - more so the presence of a stable oracle is foundational to defi.money’s Automated Loan Protection mechanism.
High gas fees on the Ethereum mainnet can make constant price updates VERY expensive and result in increased latency that reduces an oracles' performance. Leveraging the efficiencies of L2s and gas optimisations made to defi.money, the protocol now supports an exponential moving average (EMA) from Chainlink feeds. This ensures a more stable and price manipulation resistant feed (for all assets Chainlink supports), resulting in less costs for stakeholders and even more collateral options!
The modular blockchain stack will enable a future with millions of chains and existing stablecoins are primitive and slow to expand.
Stablecoins should transcend chains, moving across chains fluidly and swiftly - and by design, defi.money can live on any EVM chain and $MONEY has been architected from day one with the ability to mint on any chain. The protocol is deployed natively on every chain, in comparison to only being able to be mint assets on one chain, and bridging. It's dead simple to plug in more chains in a matter of minutes but most of the nifty cross-chain stuff comes once we have a TGE and the infamous “chain wars” begins… More on this soon anon.
Okay, so what does this all result in? A chain agnostic protocol, provides the foundation for a UX that abstracts the concepts of chains all together... so waiting on you, UX guys... but more coming soon.
Flashloans are the core functionality needed to support features such as easily looping and leveraging your collateral, which is why they are inherent in defi.money. Together with a very flexible zap system we’ve built, it allows for major UX improvements, like one-click leverage and looping. Along with other use-cases we haven’t thought of yet!
We can even support zaps that let 3rd parties manage accounts for users, providing a whole other level of automation = boundless extendability potential.
Another new feature we support is something we call Market Hooks. Hooks are a really powerful way for the protocol to extend functionality in arbitrary ways. They can for example be used to add an extra fee if users don’t stake anything in the protocol, and give that extra fee as a rebate to someone else who is staking. Hooks can even be used for analytics purposes such as automatically aggregating market data, to calculate values needed to distribute users revenue based on their positions.
In summary, hooks provide a flexible system that has true autonomy based on on-chain actions - the possibilities are profound.
By virtue of advancements in hooks and gas optimization we also have a more secure protocol that is tailored to the challenges of Layer 2s. Some highlights include:
Sequencer Protection = L2 downtime protection
Reduced PegKeeper Timeframe = Smoother peg
Increased Number of PegKeepers = Smoother peg
While these changes may seem incremental on the individual level, when combined they transcend us into a new era of stablecoins. What does this all add up to? A stablecoin protocol that can scale and capture a large portion of the untapped 3 trillion dollar stablecoin market share.
This new global order of $MONEY is coming soon, stay tuned and follow us on Twitter.
Upwards and onwards,
Team at defi.money
About defi.money
A NEW DIGITAL ERA OF $MONEY
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