The MOV JieDai protocol is a crypto asset price protocol based mostly on the Bytom mainchain and Bytom layer2 sidechain Vapor. Merely talking, MOV really realizes the lending service like a financial institution via price algorithm mannequin based mostly on good contract. Customers can deposit, withdraw and lending to acquire curiosity. After all, completely different from the credit score danger of conventional finance, Over-collateralized lending adopted by MOV can scale back the chance of default on chain.
Some great benefits of MOV JieDai
Prompt borrow & payback, on the spot deposit & withdrawal
MOV relies on the high-performance sidechain Vapor, which has an on the spot affirmation. Depositors can withdraw the principal and curiosity instantly after depositing the cash, whereas the debtors can rapidly return the borrowed cash and procure 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 similar time, solely 10% of the curiosity of the borrowed cash is charged as a platform service payment, and the deposit shouldn’t be charged any bills.
The world’s first DeFi lending public public sale instrument
The world’s first product interface helps the public sale of liquidation belongings, reducing the edge to be used, and atypical customers can take part in, and the winners are chosen via a random algorithm to make sure effectivity and equity.
Separation of JieDai pool and collateral pool to scale 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 chance 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 supplied by the curiosity of customers who borrow cash. The JieDai pool is allotted in accordance with the proportion of the cash deposited by every deposit person in addition to in accordance with the curiosity. The variable rate of interest beneath completely different market provide and demand situations may be constructed via the phase operate, which might flexibly reply to excessive conditions.
Liquidation and Public sale
MOV adopts the mechanism of over-collateralized lending, and in excessive circumstances, it could 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 swap happens.
When it reaches the liquidation line, the system will robotically public sale the collateralized belongings. As a result of the person has been reminded via a number of mechanisms earlier than, it can now not set a buffer interval however instantly public sale it.
MOV introduces a random algorithm within the liquidation protocol, and the chance of every bidder’s bid is equal. On the similar time, via the margin system, malicious bidding is prevented.
It’s price mentioning that MOV will present the primary user-friendly public sale interface instrument within the DeFi area. Peculiar 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 can additional improve the public sale effectiveness.
MOV JieDai ensures the safety of the system and person funds via over-collateralization, separation of the lending pool and the collateral pool, all-weather alternate price monitoring and danger administration system.
Over-collateralization is a typical observe 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 via credit score lending. The present lending merchandise similar to 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 now not lent as a lending belongings, making certain that the borrower can get his collateral again instantly after compensation.
MOV will monitor the alternate price in actual time across the clock, discover belongings that attain the c liquidation line in time, and conduct liquidation to make sure ample funds within the lending pool.
On the similar 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 similar time, via innovation, it additionally has many shiny spots by way of liquidation and safety. By means of cross-chain, MOV additionally integrates ecosystems of BTC, LTC, DOT, supplementing non-Ethereum ecosystem lending merchandise.