What’s MOV JieDai protocol?
The MOV JieDai protocol is a crypto asset price protocol primarily based on the Bytom mainchain and Bytom layer2 sidechain Vapor. Merely talking, MOV truly realizes the lending service like a financial institution by price algorithm mannequin primarily based on sensible contract. Customers can deposit, withdraw and lending to acquire curiosity. In fact, totally different from the credit score danger of conventional finance, Over-collateralized lending adopted by MOV can cut back the danger of default on chain.
Some great benefits of MOV JieDai
On the spot borrow & payback, prompt deposit & withdrawal
MOV relies on the high-performance sidechain Vapor, which has an prompt affirmation. Depositors can withdraw the principal and curiosity instantly after depositing the cash, whereas the debtors can shortly return the borrowed cash and acquire collateral.
Zero on-chain buying and selling payment, zero deposit service payment
In contrast with the borrowing and lending on Ethereum, MOV doesn’t cost any on-chain buying and selling charges for borrowing and depositing. On the identical time, solely 10% of the curiosity of the borrowed cash is charged as a platform service payment, and the deposit will not be charged any bills.
The world’s first DeFi lending public public sale software
The world’s first product interface helps the public sale of liquidation belongings, reducing the edge to be used, and strange customers can take part in, and the winners are chosen by a random algorithm to make sure effectivity and equity.
Separation of JieDai pool and collateral pool to cut back danger
The MOV JieDai pool is separated from the collateral pool, and the collateral pool can’t be used for lending once more, which drastically reduces the danger and prevents one pool from affecting different swimming pools.
The place does the revenue come from?
Like conventional finance, the revenue of customers who deposit cash is offered by the curiosity of customers who borrow cash. The JieDai pool is allotted based on the proportion of the cash deposited by every deposit person in addition to based on the curiosity. The variable rate of interest underneath totally different market provide and demand situations could be constructed by the phase operate, which may flexibly reply to excessive conditions.
Liquidation and Public sale
MOV adopts the mechanism of over-collateralized lending, and in excessive instances, it could possibly present sure solvency by liquidating collateralized belongings.
MOV units a Liquidation line to find out whether or not to proceed with the liquidation. By evaluating the collateral price and the Liquidation line, it units the analysis ranges of risk-free, low-risk, high-risk, and prompts the person in time when a danger change happens.
When it reaches the liquidation line, the system will routinely public sale the collateralized belongings. As a result of the person has been reminded by a number of mechanisms earlier than, it would not set a buffer interval however immediately public sale it.
MOV introduces a random algorithm within the liquidation protocol, and the chance of every bidder’s bid is equal. On the identical time, by the margin system, malicious bidding is prevented.
It’s price mentioning that MOV will present the primary user-friendly public sale interface software within the DeFi discipline. Strange customers can take part within the public sale, and thru a sure mechanism to make sure the identical chance and alternative as API customers, it would additional improve the public sale effectiveness.
MOV JieDai ensures the safety of the system and person funds by over-collateralization, separation of the lending pool and the collateral pool, all-weather trade price monitoring and danger administration system.
Over-collateralization is a standard follow within the present DeFi lending enterprise. As a result of the blockchain has a sure diploma of anonymity, it’s troublesome to pursue legal responsibility for breach of contract purely by credit score lending. The present lending merchandise reminiscent of AAVE and Compound will combine the collateral pool with the lending pool, that’s, the person’s collateral will enter its corresponding lending pool, and the collateral can proceed for use as a lending product. Though the effectivity is improved, it additionally permits the system took extra dangers, and customers returned the borrowed cash however couldn’t get again the collateral. MOV separates the 2, and the collateral is not lent as a lending belongings, guaranteeing that the borrower can get his collateral again instantly after compensation.
MOV will monitor the trade price in actual time across the clock, discover belongings that attain the c liquidation line in time, and conduct liquidation to make sure enough funds within the lending pool.
On the identical time, MOV and SlowMist reached a strategic cooperation to collectively shield the safety of MOV.
In contrast with the present lending merchandise on Ethereum, MOV has pure benefits by way of efficiency and prices. On the identical time, by innovation, it additionally has many vivid spots by way of liquidation and safety. By way of cross-chain, MOV additionally integrates ecosystems of BTC, LTC, DOT, supplementing non-Ethereum ecosystem lending merchandise.