Bitcoin DeFi Is Growing with New RIF-Backed Tokens

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So far in the evolution of DeFi, Ethereum has hogged the spotlight. However, with interoperability becoming a significant area of focus for developers, 2020 could be the year that changes. Now, Money on Chain, the company that launched Bitcoin-backed stablecoins in December 2019, has announced a new range of products backed by the RSK Infrastructure Framework (RIF) token. RIF is a technology stack offering a variety of solutions powered by the Bitcoin blockchain.

RIF is operated by IOV Labs, the same company responsible for the RSK network, Bitcoin’s smart contract platform. RIF offers developer solutions such as domain addresses, storage, and payments, and based around the RIF token.

Money on Chain was already using the RSK network to deliver its first range of products launched late last year. These include a dollar-pegged stablecoin collateralized by Bitcoin, called Dollar on Chain.

Now, it is going a step further in integrating Bitcoin to the DeFi landscape by introducing three new tokens based on the RIF token. The RIF on Chain range comprises stablecoin RDOC, leveraged token RIFX, and RPRO, designed to generate income-earning opportunities from volatility risk.

How Does RIF on Chain Work?

Stablecoin RDOC is pegged to the US dollar and, in a similar way to Maker, collateralized by RIF tokens to hedge against volatility. The difference is that, unlike Maker, users don’t have to open a Collateralized Debt Position (CDP) to be able to procure RDOC tokens. They can simply buy them directly in the Money on Chain platform with their RIF tokens.

RIFX is a leveraged asset that enables users to gain exposure to fluctuations in the price of RIF. RIFX token holders can potentially earn double the percentage gains of RIF. On the flip side, if RIF decreases in value, then losses are also magnified.

Finally, the RPRO token allows users to earn passive income from their RIF tokens by staking them to collect a share of fees paid by users of the RIF on Chain platform. RPRO mirrors the volatility of the RIF token.

Shift in DeFi

Money on Chain isn’t the only company betting that DeFi will expand beyond the borders of the Ethereum blockchain. Last week, Eric Vorhees, founder of Shapeshift and one of Bitcoin’s earliest advocates, announced that his company had acquired Israeli startup Portis.

Portis has developed a self-custodial Web3 wallet SDK so that developers of crypto applications can empower their users to keep custody of their own crypto-assets. Shapeshift had already integrated the Portis wallet into its own platform last year.

Now, the acquisition means that DeFi users will be able to access their Shapeshift assets via a range of other apps already using the Portis wallet.

Elsewhere, Morgan Creek Digital, the firm owned by Bitcoin maximalist Antony “Pomp” Pompliano, was reported as one of the investors in Canadian DeFi startup Atomic Loans.

The company is developing an application enabling users to borrow Ethereum-based stablecoins using their Bitcoin holdings as collateral. The idea is that users can liquidate their Bitcoin without having to sell, and so can still benefit from any potential upside in the value of their BTC holdings.

The funding round was led by Initialized Capital, with other notable investors including ConsenSys, and representatives from Bison Trails also participating. The total raised was $2.45 million.

Author: Julia Sakovich

Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.

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