A startup has launched a leveraged token and a decentralized stablecoin based on Bitcoin (BTC)-powered RSK and its 2nd layer solution Infrastructure Framework layer (RIF).

According to an announcement shared with Cointelegraph on April 21, Bitcoin-based decentralized finance (DeFi) protocol MoneyOnChain launched the new products on RSK's sidechain.

A DAI competitor on Bitcoin's blockchain

The new DeFi platform, dubbed RIF on Chain will feature RIF Dollar (RDOC), RIFX and RIFpro (RPRO). RPRO is a token that mirrors the price of RIF only also grants passive income by collecting a share of the fees generated by platform transactions.

RDOC is pegged to the United States dollar and backed by RIF, the tokens powering RSK-based decentralized applications. Unlike competing Ether (ETH)-backed decentralized stablecoin DAI, RIF Dollars can be acquired straight by spending RIF without creating a collateralized debt position.

The RDOC stablecoin is minted every time at that place is a certain amount of RIFpro staked on the platform. Lastly, RIFX is a token that gives exposure to RIF'due south price fluctuations with leverage. Max Carjuzaa, MoneyOnChain CEO, explained:

"RIFX is a RIF leveraged decentralized long position. Based on an automated smart contract that renews every 30 days, the product has a leverage factor of 2X at the very beginning of its lifespan and a variable leverage afterwards based upon certain variables such as the price of RIF token and the amount of RDOC stablecoins in the ROC platform. Users must be aware of the risks. [...] The ROC platform, in this current version, does not have a Margin Call notification."

A Bitcoin-based system

Carjuzaa pointed out that RSK is merge-mined with BTC and leverages Bitcoin'south blockchain for security. He besides explained that Bitcoin every bit an asset is integrated into the arrangement and its role will be expanded in the future:

"Bitcoins are locked on-concatenation and RBTC tokens are minted on the RSK network appropriately. RBTC (and thereby BTC) volition serve every bit collateral for loans, as a pegging machinery for RIF Dollar and more."

Equally Cointelegraph reported in March, atomic number 82 developer at blockchain firm Kava Labs Ruaridh O'Donnell pointed out that there is great apprehension for the development of Bitcoin'south DeFi ecosystem. When it comes to the broader DeFi infinite, it is seeing great developments at an astonishingly fast rate.

As Cointelegraph reported earlier today, Ethereum-based DeFi protocol Synthetix recently enabled tokenized real-globe assets like Brent oil and the Nikkei stock alphabetize. The CEO of blockchain business firm Trustology recently said that he believes DeFi protocols could soon sally as the world's dominant liquidity puddle if scaled effectively.