Analysis & Opinions

DeFi on Bitcoin: The Time Has Come for Decentralized Finance to Run on top of Bitcoin´s Network

The main aim behind DeFi (decentralized finance) is to create a financial service ecosystem that’s open-source, permissionless, transparent and functioning without any central authority. Within this ecosystem,  users have full control over their assets and can directly interact through decentralized applications, removing middleman fees.

Unlike the legacy financial system that has alway been managed by a centralized governing body, DeFi applications run on smart contracts on decentralized and public blockchains. This provides further transparency for end users as the code is publicly available. 

 How Do Smart Contracts on DeFi Work?

Just like how a contract is a legally binding document between two parties and is overseen by a third-party such as a lawyer,  a smart contract works similarly. There are however two game-changing modifications – a smart contract is self-executing and doesn’t need a third-party for overseeing.

Ethereum has pretty much dominated the DeFi ecosystem, with millions of dollars locked up in various applications. However, Bitcoin is rapidly joining the DeFi revolution with the help of RSK & RIFOS. A great example of how these companies are working to bring DeFi to the masses under Bitcoin´s network is MoneyOnChain, the first decentralized stablecoin protocol powered by Bitcoin’s own underlying technology.

RSK and Money On Chain

Money On Chain caters for investors looking for stability as well as opportunity via volatility. By using RSK, a smart contract platform on top of Bitcoin, MOC unleashes the power of DeFi using Bitcoin´s network. Here is a quick description of each of the tokens within MOC´s ecosystem:

The Dollar on Chain (DOC) is a stable token that will be pegged to the US dollar with a value of USD 1 per DOC. This makes it ideal for individuals who are averse to the risk of Bitcoin and seek stability in the volatile cryptocurrency environment.

BPRO is a token for Bitcoin holders that will absorb the unwanted Bitcoin risk from the DOC. It will pass part of this on to the leveraged Bitcoin operations exchange, earning BPRO holders a passive income, while also keeping some free leverage.

The MOC token will have three functions:

  1. MOC holders will have a discount when paying the fees for the use of the platform using MOCs.
  2. MOC holders will have the power to vote and veto the platform updates. 
  3. MOC is used as an incentive for those who run “MOC” nodes and as an incentive to BitPro holders.

Money On Chain’s vision is a world where international transactions are instant, cost-efficient and free from the volatility of the current cryptocurrencies markets.


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This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.

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