A Decentralized Stablecoin on Rootstock
The stablecoin industry continues to grow and expand. Until now, most of these assets were issued on alternative blockchains such as Ethereum, Tron, OMNI, and EOS. The world’s leading cryptocurrency, Bitcoin, used to lack the necessary protocols to support the creation of such an asset by default.
Thanks to RSK, a smart contract platform on top of Bitcoin,, that is no longer the case. Its smart contract solution leverages existing Bitcoin technology to allow for new decentralized applications and services to be built.
Money on Chain, a Bitcoin-based decentralized finance protocol, is making full use of this option. The company has successfully launched its own leveraged token and a decentralized stablecoin.
Introducing RIF on Chain
The new DeFi platform, known as RIF On Chain, encompasses many different facets. First of all, there is the RIF Dollar – or RDOC – which will have its value pegged to the US Dollar. It is backed by RIF tokens, which are utility tokens designed to let holders consume decentralized infrastructure services.
One interesting aspect of the RDOC asset is how it can be acquired by spending RIF, instead of being pushed into a collateralized debt position like when using DAI.
Secondly, there is the RIFX token, which serves a very specific purpose. It is designed to give holders exposure to RIF’s price fluctuations on the market but with leverage.
Last but not least, there is the RIFPro (RPRO) token. This token is designed to mirror the price of RIF, but it also gives access to passive income for holders. By owning this asset, holders will collect their share of all fees generated by the RIF on Chain platform’s transactions.
DeFi Elevates Bitcoin’s Appeal
There are many different reasons as to why Bitcoin’s DeFi ecosystem holds a lot of promise. Not only will it bring more services and use cases to Bitcoin’s ecosystem in general but it also allows service providers to leverage Bitcoin’s blockchain for security.
The RIF tokens native to RSK are merge-mined with BTC. In recent years, the concept of merge-mining has seemingly lost traction, yet it is a great way for companies to leverage blockchain security from existing networks.
It also looks like Bitcoin’s role within RSK´s ecosystem will grow. Currently, it is integrated into the system as an asset by locking them on-chain.
Through this locking mechanism, RBTC tokens can be minted on the RSK network. RBTC – and indirectly, BTC itself – will begin serving as collateral for loans.It can also be used as a pegging solution for RIF Dollar, as well as other potential options waiting to be explored.
Image(s): Shutterstock.com
The post Stablecoins on Bitcoin: The Time has Come for RIF On Chain appeared first on The Merkle News.
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