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Last updated: Aug 16, 2023
Moremoney finance is an Avalanche-based decentralized lending protocol, which allows users to deposit their LP tokens, interest-bearing tokens, and other major tokens as collateral and receive MONEY, the protocol’s native USD pegged stable coin in exchange.
Moremoney users can deposit liquid as collateral to mint MONEY, the protocol’s stablecoin.
As soon as the collateral is deposited, the smart contract moves it to other supported protocols where the tokens earn yield. Supported collateral assets on Moremoney are either already interest-bearing or become interest-bearing when they get deposited into other yield-generating DeFi protocols.
MONEY is minted when the debt is opened with a Moremoney fee of 0.1%, which is charged on top of the borrowed amount.
The protocol will automatically select a yield-bearing strategy for collateral. Strategies for collateral and how collateral earnings are used can also be changed by the borrowers.
Yield compounding strategy will be selected for single asset collateral tokens, where the yield or interest earned by the collateral will be reinvested or sold for the same asset. The protocol uses strategies from partners such as Yield Yak, Aave, Banker Joe, and Benqi.
MONEY is the platform's native USD-pegged stablecoin. The 1:1 peg is maintained by the value of the collateral as well as by the yield earned by collateral. In addition, arbitrageurs ensure the ratio by buying up MONEY in the market when it falls below the peg and reselling it when the peg is restored.
As an additional measure to maintain the 1:1 peg, Moremoney deploys a variable interest rate model for borrowers, which tracks the USD peg on-chain. Under this model, if the value of one MONEY is equal to one USD, the interest rate will remain at the base, however, if MONEY loses its one USD peg, the interest rate will increase accordingly. This model is designed to encourage borrowers to repay their loans and restore the 1:1 MONEY peg. The protocol also has the capacity to redeem loans, which will automatically rebalance a trading pool on a falling peg.
MONEY can be traded for other stable and non-stable assets on other decentralized and centralized exchanges.
Users can also provide liquidity to MONEY-AVAX and MORE-AVAX liquidity pools on Trader Joe and then stake their LP tokens on the Moremoney Farm section to earn rewards in JOE, and MORE.
The minimum collateral ratio and maximum LTV is determined individually depending on the collateralized token, while the liquidation threshold is also calculated individually depending on the collateral. Any user can trigger liquidations for loans that exceed the established LTV and receive a liquidation fee ranging from 4% to 12%. However, users should be aware of the estimated gas fees.
As the first step to using the Moremoney app, the user needs to connect a wallet. The only wallet Moremoney Finance supports as of now is Metamask.
The front page will display all the supported assets that are accepted as collateral. Users can filter between single assets, LP tokens, and all assets, as well as search for a particular token using the search bar.
The user needs to click on the desired collateral token. The pop-up window will show the deposit value, APY, the assigned strategy, collateral ratio, and the expected liquidation fee. The user needs to enter the amount of tokens to be deposited and the amount of MONEY to be borrowed and confirm the operation.
To repay the loan the 'Repay' button should be clicked. In order to repay a loan and withdraw collateral, a user needs to make sure that there is enough MONEY in their wallet to clear all the debt. Withdrawing the collateral is only possible when the entire loan is paid out.
If there are loans that are subject to liquidation, a special notification will appear in the UI, encouraging users to visit the page with such loans. Then users just need to click the liquidation button on a loan that meets the liquidation threshold.
MORE is the Moremoney protocol’s native token, with a total supply of 1,000,000,000. 75% of the tokens are allocated to the protocol’s Ecosystem Fund to incentivize long-term growth and adoption of Moremoney, and the remaining 25% are reserved for the team with a three-year vesting period.
MORE holders can choose between the two staking options – they can be either staked to get xMORE or for veMORE.
Users staking their MORE tokens for xMORE avoid the risk of impermanent loss.
MORE holders also can stake their tokens in exchange for veMORE and receive boosted yield. veMore is a non-transferable and non-tradeable token generating 0.014 veMORE every hour. The more veMORE tokens are generated, the more utility is added to MORE tokens. 50% of the protocol’s interests and rewards will be distributed as boosted rewards for veMORE holders.
MONEY holders can stake their tokens to get iMONEY and earn 90% of interest paid by MONEY borrowers, 50% of which will be paid as base yield and 50% as boosted yield based on accumulated veMORE.
Sir Moremoney and Dag are the co-founders of Moremoney. Sir Moremoney started his crypto journey in 2017 as a crypto investor, then he moved on to developing DeFi applications and designing protocols. He is known for his deep DeFi knowledge. Dag has over 10-year experience in engineering, specifically in distributed systems and machine learning. For the last three years, he has been involved in developing blockchain protocols. They also claim to have five developers in their team and plan to hire an additional solidity developer.
In the future, self-repaying loans will be possible for all kinds of acceptable collateral. It is also planned to introduce NFTarts as collateral, supporting peer-to-peer loans against different types of illiquid tokens. The team also intends to introduce liquidation-protected loans, make the protocol cross-chain, widen the range of collateral assets, and come up with more strategies.
The team is working on projects that can leverage the MONEY stablecoin and become an important part of the DeFi infrastructure on Avalanche. A great example is More Liquidity (Whitepaper), but they are working on other projects of this magnitude that haven’t been fully disclosed yet.
The protocol is also planning to transition to DAO in the future and as part of DAO, MORE holders will be able to take part in the protocol governance.
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