DeFi on Bitcoin & RIF Lumino Payments: The Next Revolution on Finance

December 20, 2019

Decentralized Finance (DeFi) is the movement that leverages decentralized networks to transform old financial products into trustless and transparent protocols that run without intermediaries.

Bitcoin is the cornerstone for DeFi implementations using blockchain technology, as it contains all the key ingredients for true decentralization: resistance to censorship, neutrality, a public data layer and no geographical boundaries.

RSK, a sidechain on top of Bitcoin’s network, provides the best possible scenario for DeFi use-cases development as it takes full advantage of Bitcoin’s ecosystem, both by enabling Bitcoins on RSK (aka Smart Bitcoins or RBTC) to be used as the basis for the economy as well as securing the network through merged mining. This makes RSK the most secure smart contract platform. Additionally, Bitcoin is the most liquid digital asset enabling seamless transactions between parties without intermediation costs.

As an example, Money on Chain (which launched its mainnet this month) will begin its integration using RIF’s tech stack with the stablecoin protocol. Money on Chain will enable the creation of stable assets by individuals, setting the stage for a peer-to-peer system capable of supporting global DeFi ecosystems and sharing economies.

The Money On Chain team is working to solve the volatility problem by using a three-party system for its stablecoin token. The token will “split” Bitcoin’s volatility into two separate assets and a derivative financial instrument. By stripping Bitcoin into separate tokens, an interesting scenario is created. On the one hand, there will be a Dollar on Chain, or DOC, which remains pegged to the US Dollar at all times while on the other side, we have BitPRO. It is a new token for those who seek passive income in Bitcoin and have a low aversion to risk. BPRO holders earn on platform fees and an interest paid by traders using BTC2X, a 2x long position on the price of bitcoin against USD.

The integration roadmap includes using RIF Lumino payments network architecture to provide scalability for the Dollar on Chain token, and RIF’s deployment of MOC’s token Dollar on Chain into Lumino. In addition, the tech teams are currently working on the final details for the launch of a RIF Dollar on the MOC protocol.

In the upcoming months, MOC will integrate RIF Lumino into its protocol. This will provide scalability for the Dollar on Chain token, which is crucial to achieve adoption. Launching DOC on the Lumino payments network will allow thousands of instant transactions with near zero fees (a crucial aspect for any DeFi solution). Introducing RIF Dollar into Money on Chain’s protocol will increase liquidity for the MOC community.

Summarizing, RIF Lumino Payments provides the perfect framework for DeFi solutions development as it eliminates intermediation costs while exponentially reducing transactional costs with superlative TPS outputs. In our constant effort to create the financial system of the future, we invite all developers around the world to submit their DeFi ideas or use cases to our Grants Program where funding is provided for the right projects to create a new Internet of Value.


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