Defi.money (MONEY)

Rank #1158

Defi.money is a decentralized stablecoin protocol in which the MONEY token functions as a USD-denominated stablecoin. Issuance occurs by depositing collateral and opening a loan within Defi.money’s own DeFi environment.

How issuance and borrowing work

To mint MONEY, the user deposits collateral and starts a borrowing position in the protocol. This model follows the CDP logic, but with a difference in how liquidation is handled.

Instead of using only a fixed price limit, Defi.money uses an AMM-based liquidation mechanism, capable of buying or selling the collateral within a liquidation price range.

Why the liquidation mechanism matters

The use of the AMM liquidation model seeks to reduce the risk of total liquidations that could occur because of price volatility. Thus, execution tends to occur within a defined range, rather than being triggered only upon reaching a single threshold.

Network, cost, and everyday use

MONEY was optimized for everyday use by being deployed on Layer 2 networks, helping make smaller loans more accessible in terms of operating cost, due to reduced gas fees.

In addition, the protocol is natively cross-chain: MONEY can be minted on multiple networks and also transferred between them via a bridge.