MonolithosDAO launches Land – the DeFi platform, in which the main unit of account will be “crypto ruble” – a decentralized stablecoin pegged to the Russian currency.
The stablecoins and DeFi projects became symbols of 2020, which again gave hope for the cryptocurrency market to resume growth. The fall in oil prices, the COVID-19 pandemic, the confrontation between the United States and China – all this increased investor concerns about overly active actions to stimulate the economy by global regulators and central banks ready to fill the fire of the impending crisis with the help of quantitative easing programs. In the last financial crisis of 2008-2009, this led to the birth of Bitcoin. The current crisis is able to bring decentralized financial services and assets to a new level, where they will occupy a more significant niche.
Demand for decentralized financial services and stablecoins, which differ from true cryptocurrencies in less volatility, is confirmed by statistics. Adjusted volume of transactions using stablecoins in June reached a new historical record, slightly not reaching $ 50 billion. According to the analytic service Messari, the market capitalization of dollar-linked stablecoin Tether (USDT) reached $ 10.3 billion, although a year ago it did not exceed $ 3 billion. The demand for stablecoins is explained by the simplicity and ease with which transactions in these tokens are conducted, and the lack of high volatility inherent in other crypto assets.
Decentralized finance is growing at an even faster pace. According to debank.com, DeFi has already blocked assets for more than $ 2 billion. Most DeFi-projects offer users the opportunity to receive passive income using various loan products, that is, they enter into direct competition with banking services, which are less and less in line with expectations and requests. customers.
The synthesis of these two areas – stable coins and decentralized finance – can have a synergistic effect on the cryptocurrency market. So far, there are not so many examples of such a synthesis of the two spheres of the cryptocurrency market. One of them is MonolithosDAO. This is a hybrid platform that combines the advantages of stablecoins and offers to use the built-in DeFi services.
The unit of account of the MonolithosDAO network is the MCR crypto ruble, a digital coin whose exchange rate is gently tied to the ruble in a 1: 1 ratio. But unlike its fiat prototype, the MCR is not subject to the centralized management of regulators and is not manipulated by any power structure. The uniqueness of the crypto ruble from Monolithos is that it is the first digital token attached to fiat, which fully meets the criteria of the DAO community. Unlike Tether, the issuer of one of the most popular and scandalous stablecoins in the world, the MCR crypto ruble is managed through a decentralized autonomous organization, decisions in which are made collectively taking into account the opinions of all network members with voting rights.
MCR is resistant to inflation, since it has almost no volatility, like a stable coin, which makes it ideal for daily settlements and business operations as a measure of value and deferred payment means.
MonolithosDAO is based on the MakerDAO protocol and runs on the Ethereum blockchain. This is a full-fledged DAO project – coordinated, scalable, open source. DAO is managed through two mechanisms – self-executing smart contracts and voting.
DeFi stablecoin emission mechanism
The integration of the architecture of decentralized autonomous organizations in the DeFi-project led to the birth of a completely new mechanism for the issue of stablecoins. If in centralized digital projects stablecoins are issued by some issuing organization, the company responsible for fiat security of issued coins, then for the DAO community this principle of work does not apply, since it does not meet the philosophy of a decentralized project – collegiality. MonolithosDAO developers have found an elegant solution to this problem – MCR stablecoins are generated using the software that the user places on the platform. For this, the Land platform was created.
Land is a DeFi platform that exists in the MonolithosDAO ecosystem, designed to trade, lend, deposit and generate MCRs. The user selects the type of security (for example, a security deposit in the form of Ethereum tokens). The pledge is blocked, and MCR stablecoins are generated on this security. The collateral coefficient, i.e. the value of blocked ETH tokens to the value of emitted crypto rubles, should not be less than 125%.
Any Ethereum-based digital coin can become a collateral asset on the Land platform, for which members of a decentralized organization with a voting right (that is, MDT token holders) voted as collateral on the MonolithosDAO platform.
MCR holders can earn money from their savings automatically. To do this, they need to place their stablecoins on the DSR smart contract. The savings interest rate that is accrued to the user is a variable parameter that can be changed by decision of the MonolithosDAO participants with the right to vote. This mechanism allows you to keep the MCR at the target price and prevent radical deviations from the ruble exchange rate.
A security locked security deposit may be returned at any time. In order to regain the security deposit, in part or in full, the storage owner must pay a part or fully return the MCR generated by him, as well as pay a stability fee, which is constantly charged to the outstanding MCR (about 4%).
The most important nuance – Land is not a centralized platform, which users are invited to entrust their digital assets with. Land is a decentralized platform accessible through a wallet supported by Ethereum. Users, and only they, have access to their assets.
Land is built on the basis of proven and formally verified smart contracts created by Maker, the industry leader in secure decentralized finance.
As a decentralized autonomous organization, MonolithosDAO is managed by its members with voting rights. Those investors who hold MDT tokens have this right.
At the same time, all participants, not only holders of MDT tokens, can make proposals regarding voting. But only those who own the MDT can vote for adoption. It is they who decide which coins to take as collateral, what are the risk parameters for certain collateral assets (what determines the collateral ratio of generated stablecoins), how to change the savings interest rate on DSR contracts, which updates to launch and many other issues related to the functioning of DAO . Voting is also used to make decisions on non-technical aspects of the protocol, such as asset priority lists, management processes, role mandates, and even the election of individuals to perform specific duties. The system is designed in such a way that each of these actions brings direct or indirect profit to the community members,
When voting, the number of votes is proportional to the number of MDTs that the voter sends to the address of a particular voting contract. The more tokens an MDT secures to a contract, the more influence it has on decision making.
In total, the MonolithosDAO system has 1 million MDT tokens. 80% (800,000 MDT) of them will be distributed among community members during the two-stage tokensail.
On June 20, the first, closed stage of the token sale started, which will last until August 10. During the private round, 300,000 MDT will be sold for as low as $ 0.4. The second stage of the token sale, which is scheduled for August 3, 2020, will begin with a listing of coins on Uniswap. In total, it is planned to sell 800,000 MDT, which is 80% of the total issue of stablecoins. At this time, the MonolithosDAO team will deposit 500,000 MDT and about $ 210,000 in ETH cryptocurrency into the created pool on the Uniswap site.
Thus, the MonolithosDAO economy is based on a transparent and well-thought-out management system that maintains the stability of the MCR coin with the help of certain incentives that encourage participants to make decisions that are beneficial to the entire system. Stablecoin MCR is suitable for hedging risks as a means of accumulating value and can be used as a means of circulation for decentralized applications.