[DRAFT] SIP-17: Money on Chain’s $MoC Listing and Incentivization Strategy

Hi Everyone, after seeing the success with SOV launch and the traction that was gained through the reward mechanisms in the rBTC/rUSDT pools I would like to propose the following given the recent news of the Money on Chain TGE where we have now MoC Tokens available. I truly believe that RSK and Sovryn users would benefit from gaining more exposure to MoC tokens, and especially to have DOC liquidity going up as rUSDT are typically hard to get and DOCs can be minted directly with just having rBTC and those are, from my perspective a good Bitcoiner Stablecoin

Background

Money on Chain (MOC) is an RSK-based DeFi platform with a stablecoin, HODL token (BPro), orderbook DEX (TEX), leveraging mechanism, etc. which empowers Bitcoiners to improve the performance of their assets while also retaining full control of their private keys. Money on Chain has 2 tokens listed on the Sovryn DEX: DoC, a Bitcoin-backed stablecoin, and BPro, a token for capitalizing on Bitcoin’s volatility.

Proposal

  • Listing Money on Chain’s $MoC token on the Sovryn DEX
  • Sovryn’s treasury to bootstrap with rBTC the MoC/rBTC AMM pool. Equivalent amount in $MoC to be provided by the Money on Chain community.
  • $37,500 in $SOV to reward $DoC lenders after 30 days
  • $37,500 in $MoC to reward liquidity providers in the DoC/RBTC AMM pool.

The $MoC token brings governance to Money On Chain’s self contained protocol which includes DoC (the first USD stable coin collateralized with Bitcoin), BPro (a HODL and earn token with unique benefits), BTCx (an amplified leveraging mechanism), and TEX, a decentralized orderbook exchange.

The MoC token enables:

  • Vote and Veto of platform updates and parameters.

  • Staking for rewards and fees from users of the platform

  • Discounts when paying the fees with MoC

Motivation

Money on Chain is a partner project of Sovryn. Two of its products, the DoC Bitcoin-backed stablecoin, and BPro, a token designed for BTC holders that allows users to earn on their Bitcoin position, gaining free leverage.

Incorporating Money on Chain’s DAO token, $MoC, will further align both initiatives in bringing more DeFi products and features to Sovryn users.

DoC is a decentralized Bitcoin-backed stablecoin with greater permissionless features than that of USDT, making it deserving of incentivization for liquidity on our platform.

The goal is to incentivize $1.5M in DoC across the RBTC/DoC AMM as well as the lending pool.

Proposed changes

  • List MoC Token Contract Address: 0x9aC7Fe28967b30e3a4E6E03286D715B42B453d10

Audit report: [GitHub - money-on-chain/Audits: Third Party Audits of Money on Chain Smart Contracts and Apps

  • Exchequer provides 2.5 RBTC in liquidity with the equivalent in MoC in the MoC/RBTC AMM by Money On Chain Community.

  • Exchequer retroactively rewards $37,500 worth of SOV to DoC lenders over a 30-day liquidity mining event, while the equivalent value in MoC will be provided to DoC/RBTC liquidity providers

  • If over 30 days, DoC liquidity providers provide $1.5M in DoC in our system, they will be retroactively paid 5% in either SOV or MoC, as applicable.

11 Likes

It is very interesting proposal, but is 2,5 RBTC and an equivalent in MoC enough for initial liquidity? It seems not much.

2 Likes

Could you share the basis from where this amounts come from?

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I find the proposal very interesting and will vote in favour.

I have a question: is it proposed to create a MOC-rBTC pool and a DOC-rBTC pool? I ask this because a reward in sov and MOC is proposed below for DOC contributors. It is not clear to me whether there is a reward for MOC contributors.

Another question: does it make sense to set up a sov-moc pool as well?

2 Likes

I think those amounts are what I’d like to hear from the community here. Any initial suggestion?
I guess rBTCs will come strong on their own as the expected initial pressure will be on the buy side. Then as soon as the price starts moving arbitrage between this swap and MoC Tex Exchange should ensure people will add liquidity as neededs. But maybe some experience from the SOV launch would help adjusting if needed this number

1 Like

I like the proposal and the rational behind the use cases for the new token. I do have a suggestion on the incentives.

While it is great to equally incentivize users based on liquidity provided; In my opinion, having a two-tiered reward system will encourage others to add more liquidity and create a sense of competition. Here is my idea on a little amendment on the current proposal:

  • 25,000 $SOV for the general pool

  • 12,500 $SOV for the top 3 or 5 liquidity providers.

Some users will compete to be in the top 3 or 5 liquidity providers and those users might even appreciate a commemorative NFT with their ranking listed in the NFT itself (I know we have some cool ideas on NFTs and given the current fad, might encourage others to participate more) Just a thought, not asking to implement this but to start a discussion.

2 Likes

Hi thanks for the support.
Doc-Rbtc pool already exist but there is only limited DOCs there given all those early incentives to the USDT/rBTC pool… so the idea is not just to push MoC token sale but also to improve the availability of DoC as a stable coin for Bitcoiners being used at Sovryn
with regards to Moc/rBTC pool incentive for MoC liquidity providers is similar to what’s happening with Sov/rbtc where if you have SOVs you can get rewards if you stake them but if you put them in the liquidity pool you don’t get those rewards after this initial incentive programs (If I’m not wrong)

2 Likes

Doc/rbtc liquidity is almost negligible so if we manage to increase to 1.5M then this reward would be equivalent to 5% which is ok. Today there is I think 4-5M in USDT… and almost nothing in DOC so hitting 1.5 would be a good first step?

2 Likes

I’m not sure what to suggest really - it depends on the demand for each asset. I provided USDT to the RBTC-USDT pool during this last round of LP incentivisation and the USDT side was hugely underfunded compared to the RBTC side, I think simply because so many people with btc felt they had no access to defi previously, and just deposited what they had rather than switching to usdt and depositing that. Could be wrong though.

There was a mechanism for incentivising the weaker token in the pair to be added to, but to be honest, the mechanism didn’t seem to be providing the market with sufficient incentivisation to maintain a balanced ratio between the two tokens.

I’m not sure if the mechanism wasn’t providing incentivisation though or whether there were just so few places where the arbitrage opportunity could take place that it wasn’t happening. I hope that makes some sense… Basically as more users and exchanges pop up trading these assets, some of the imbalances I saw in the RBTC-USDT pool should be dealt with. As it was, it was -2000,000 on the USDT side of the pool for a while, and depsite incentives being offered to add USDT, depositing of USDT wasn’t happening.
i’m not sure what imbalances, if any, might occur in the pairs mentioned here, and how they can be dealt with.

Can you elaborate on this more? Does that mean if $1.5M of DOC liquidity is gathered from LPs, there will be additional rewards of 5% of the total value on top of the already planned $37,500, tripling ($1.5m / 20 = $75k worth of SOV/MoC) the total rewards?

To add on the topic of liquidity, 2.5 rBTC + equiv worth of MoC would be roughly equal to $250-300k of liquidity, which is awfully similar to those vaporwave projects we see launching on IDO platforms these days. Needless to say that this low amount of liqudity is deliberately designed to provide a ridiculous pump on listing and allow holders to cash out at crazy multiples of 20, 50 or 100x on day one. Is that what you’re intending to do, as well? For the record, I don’t think that’s the case, but I need to be sceptical here, especially given that you’ve suggested this low of a liquidity yourself. I have little to no respect for most of the IDO platforms artificially ‘pumping their new projects’ multiples up’ these days using embarrassingly low liquidity (and starting mc) and would hate to see Sovryn become one of them. So first step would be to increase your suggested liquidity - provided that it causes no issues to our treasury, I suggest either 4 or 5 rBTC to be added from our side, with the equivalent percentage increase of your side liquidity, as well. Btw, how will the initial ratio (i.e. price) be determined?

Also, since it wasn’t explicitly mentioned in your proposal, but probably is implied from our previous LP incentive programs, I would expect all direct LP rewards (especially those paid in SOV) to be vested over 10 months with gradual linear unlock.

1 Like

$MOC is pretty foreign to people who are very used to the ETH Defi space. I am not sure whether that will help to improve liquidity or the Sovryn platform per se.

I suggest we stick to rBTC or USDT pool which are more popular to people doing Defi, taking into consideration that the ETH bridge will be made available soon. The rewards to incentivize people to do LP should be targeted to these pools given that they are more popular and hence it is expected that people will use USDT to invest in SOV via the Sovryn platform.

Sounds costly for Sovryn and benefitial for Money on Chain. But coukdnt really say looking at numbers that come from a hat

I believe we are all part of the creation of DeFi for Bitcoin here and hence in my personal case as raw bitcoiner I believe a bitcoin backed stable coin is something we should be supportive of. In fact sovryn was built here and not in BNB or ETH etc for a reason so I believe those options should be closely aligned to that vision.
But I’m not suggesting “replacing” usdt but adding more options and helping the ecosystem

Those doing DeFi know that DeFi is so much better when you have an ecosystem with multiple options and also arbitrage opportunities. Money on chain can mint DOCs directly in their app with just two clicks using rBTC and I would personally prefer to ensure we have a strong native token in RSK as ethereans have their DAI as well

Yes those bridges are great as most DeFi is happening outside but RSK will be more attractive if we start building interaction among platforms in the ecosystem and not if it’s just one app

4 Likes

Hi, the example for that pool was that the reward would be equivalent to 5% if it reaches 1.5 million just as a reference

It may end up being more or less in % terms depending on the final liquidity. If it is less than 1.5 million then the reward will represent more than 5%

With regards to initial liquidity … those are numbers that can be reviewed… MoC token are already available for sale and we can see the current volume and adjust if most people believe that number is on the lower side. Additionally given that there are many minted mocs already in circulation and rBTC in circulation, the idea of incentives for that pool are just to ensure we get more liquidity from other people as it happened with SOV already

1 Like

Agree with your thoughts on this. Just one suggestion, if we doing it, let make a guide or something easy for newcomers or people foreign with MOC to be acquainted with it. The last thing we want to achieve is to roll out features that nobody know how to use or want to use! :sweat_smile:

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Vey interested point of you, the last think the MoC comunity wants to see is a pump and dump on its token. There is moc liquidity on rskswap and on tex.moneyonchain.com so if there is demand on the sovryn platform people will buy in other dex to sell on sovryn . Early contributors will be tempted to sell if the price start to go up.
MoC - Governance | Money On Chain

3 Likes

This soud great, I do not see why moc is giving moc token to people using DOC in sovryn but it is great anyway. (maybe they like our community?) We already give SOV to people providing USDT so incentivice the use of a Bitcoin backed stable coin is good for bitcoin and good for SOV.
I was taking a look at their stats and their bpro (or bitpro? ) token is amazing. The project is amazing.

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I fully agree with the proposal in order to achieve higher volume in Sovryn involving other DeFi proposals on Bitcoin, the synergy between both projects is beneficial for all.

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I think the fact that there are two places would help through the arbitrage, do better at price discovery …

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Great proposal!
I really don’t understand why bitcoiners are using a fiat backed stablecoin as USDT or DAI when a Bitcoin backed stablecoin as DOC exist. I want to believe it’s just because they don’t know DOC yet.
I think we, Soveryns, must encourage people to use a real bitcoiner tool as $DOC instead of relying on corporate created shady things that can be suppressed anytime for the fiat powers.

7 Likes