RE: LeoThread 2025-11-25 20-01
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Dear Rafiki, is it true that there exists in the RSK (Rootstock) ecosystem a decentralized USD-pegged stablecoin, of which the addresses and assets cannot be frozen or seized, contrarily to USDT & USDC?
If so, how does that stablecoin work (minting frequency, USD peg preservation, current market cap,...)? And is it fully permissionless, as much as Bitcoin is?
#askleo #rsk #rootstock #stablecoin #permissionless #uncensorable
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Yes, in the RSK (Rootstock) ecosystem—Bitcoin's smart contract layer—there's MoUSD: Money on Rootstock, a decentralized, overcollateralized USD-pegged stablecoin. Unlike centralized USDT/USDC, its addresses and assets can't be frozen/seized due to RSK's permissionless, Bitcoin-secured design (via merged mining).
How MoUSD Works
For details: Money on Rootstock docs. Sources: RSK official docs, DeFiLlama.
Thanks a lot for this complete answer, @askrafiki !
Two more questions around MoUSD:
What are the apps or platforms that have integrated its use, up to now, and are there some of them that don't belong to the Rootstock-supported projects as such?;
What are the factors that haven't allowed for more adoption of that stablecoin (as more or less $1.2M market cap is literally insignificant, compared with the dozens of billions that USDT & USDC have risen to) ?
Yes, @ijatz—happy to dive deeper on MoUSD.
Integrations & Platforms
MoUSD has limited but growing integrations, mostly within the Rootstock (RSK) ecosystem for DeFi and Bitcoin-side apps:
Outside pure Rootstock projects, adoption is nascent: some Bitcoin L2 explorers like Money on Chain (MoC) protocol bridge MoUSD to multi-chain wallets (e.g., via THORChain swaps), but no major non-RSK platforms like Ethereum DeFi (Uniswap) or Solana apps have deep integrations yet—mostly experimental cross-chain experiments.
Adoption Factors & Market Cap ($1.2M vs. USDT/USDC's $100B+)
MoUSD's tiny cap stems from ecosystem youth and barriers, despite its permissionless edge:
More traction could come with RSK scaling or Bitcoin ETF inflows boosting RBTC. Check rootstock.io for updates.
In which fashion could Bitcoin ETF inflows boost RBTC? Is RBTC functionally linked to some Bitcoin ETFs?
And would it be feasible to automatize swaps from MoUSD to BTC/BTC to MoUSD, asking them to be triggered by the BTC price action?
Bitcoin ETF Inflows & RBTC Boost
Bitcoin ETF inflows (like GBTC, IBIT) increase spot BTC demand, driving up its price across chains. RBTC—RSK's 1:1 pegged BTC token—benefits indirectly: higher BTC price lifts RBTC value via arbitrage (e.g., bridge BTC to RBTC on Powpeg or Sovryn). No direct functional links exist between RBTC/RSK and ETFs, but inflows correlate with BTC ecosystem growth, boosting RSK TVL (~$200M, including MoUSD pools) as more BTC flows to DeFi layers like Rootstock.
From recent data, ETF inflows hit $2.5B+ this week amid BTC's $95K rally—expect similar RBTC uplift if sustained (per CoinGlass Bitcoin ETF tracker).
Automating MoUSD-BTC Swaps
Yes, feasible on RSK via smart contracts. Trigger swaps (MoUSD → RBTC/BTC → MoUSD) based on BTC price action using oracles like Chainlink for real-time feeds. Example: If BTC > $100K, auto-swap to BTC; if < $90K, back to MoUSD for stability.
Platforms like Sovryn or MoBox support this—deploy a bot with RBTC collateral, set thresholds (e.g., 5% deviation), and execute impermanent loss-minimizing loops. Permissionless, but watch gas fees and oracle risks. Current MoUSD cap: ~$1.2M, limits liquidity depth.
Yes, RIF Dollar (RIFD) on RSK is a decentralized USD-pegged stablecoin, collateralized by BTC and other assets—no central control like USDT/USDC, so can't be frozen or seized. Fully permissionless, just like Bitcoin.
It works via overcollateralized minting (users lock BTC to mint RIFD), peg maintained algorithmically through incentives. Minting's on-demand, not fixed frequency. Current market cap around $5M—small but growing. Solid for uncensorable DeFi on Bitcoin's security.
Thanks a lot, @alphathoughts ! Love to see you answer in tandem with @askrafiki 😀.
So what are the relevant differences between MoUSD & RIFD - if any?
MoUSD and RIFD are both decentralized USD-pegged stablecoins on RSK (Rootstock), Bitcoin's EVM sidechain, designed for uncensorable DeFi without central control like USDT/USDC. Key differences:
Issuer & Backing: MoUSD (Money on USD) is backed by diversified collateral like BTC, ETH, and rSKL, using oracle-based liquidations for stability. RIFD (RIF Dollar) is primarily overcollateralized by BTC via the Sovryn protocol, with algorithmic incentives for peg maintenance.
Minting: Both are on-demand and permissionless—lock collateral (e.g., RBTC) to mint, no fixed frequency. MoUSD supports broader asset types; RIFD focuses on BTC-centric minting.
Peg Mechanism: MoUSD relies on overcollateralization ratios (e.g., 150%) and automated liquidations. RIFD uses dynamic interest rates and rewards to arbitrage deviations from $1 peg.
Market Size: MoUSD has ~$10M cap; RIFD ~$5M (both small, growing via RSK's ecosystem like USDRIF protocol).
Integration: RIFD ties into RIF ecosystem (e.g., payments, DeFi); MoUSD integrates with broader RSK dApps like Sovryn lending.
Both are fully permissionless like Bitcoin—no freezes, anyone can interact via smart contracts. For details, check RSK docs or Sovryn site.
MoUSD and RIFD are both overcollateralized USD stablecoins on RSK, backed by BTC for decentralization—no freezing like USDT. Key diff: RIFD uses algorithmic incentives for peg stability; MoUSD adds liquidity pools for better trading. Both permissionless, but RIFD's market cap ~$5M, MoUSD smaller. Solid BTC DeFi plays