The decentralized finance ecosystem forming around Bitcoin has been bolstered by the release of three new products. USD-pegged stablecoin RDOC, also known as the RIF Dollar, has been deployed by Money on Chain. Backed by RIF tokens, it provides a stable means of asset transfer without fiat backing. RDOC can be purchased directly within the RIF on Chain defi platform and transferred and stored in compatible wallets.
In addition to RDOC, Money on Chain has released RIFX, a leveraged asset that grants holders exposure to movements in RIF’s price. Its function can be likened to FTX’s leveraged “bear” and “bull” tokens for assets like bitcoin and EOS.
Bitcoin Bolsters Its Defi Capabilities
The bulk of the decentralized finance applications being built on Bitcoin emanate from RSK, whose smart contract network, anchored to Bitcoin’s proof-of-work, includes an entire defi stack with modules for wallets, exchanges, stablecoins, payments, lending, and escrow. Money on Chain has close ties with IOV Labs, the company powering RSK and RIF. These entities are accelerating the rate of defi development within the Bitcoin ecosystem.
“We are excited that top defi technologies such as Money on Chain are choosing the RIF token and the RBTC blockchain to evolve and position their products in this high growth competitive environment,” said IOV Labs CEO Diego Gutierrez Zaldivar.
RIF on Chain’s RIF Dollar (RDOC) and RIFX are complemented by RIFpro (RPRO), a token that mirrors the RIF token price. It enables users to earn a passive income on their RIF tokens by collecting a share of the fees generated by platform transactions.
Lightning Network Further Boosts Bitcoin’s Defi Credentials
While Money on Chain and RSK are accelerating the development of defi applications that utilize Bitcoin’s security model and network effects, work is continuing apace on Lightning Network. Lightning Labs, which is leading the development, has been shipping modular tools that enhance the ability for BTC to be securely sent and received on layer two, with the latest release, the Lightning Service Authentication Tokens (LSAT) protocol, allowing businesses to offer paid APIs on the Lightning Network.
The $6.7M of BTC currently locked on Lightning Network is down from its July 2019 peak, but this is primarily a reflection of bitcoin’s price rather than an indication of diminishing interest. Most of LN’s supporters appear content to sit it out until the network reaches a stage where it’s suitable for wide-scale payments. At present, the learning curve for new users remains too high, while routing funds from on-chain to LN is also still complex.
Despite the challenges associated with developing a second layer payment network upon Bitcoin, the significant investment and talent thrown at it suggests the project will eventually come good, and help BTC become a means of payment as much as a store of value. In the meantime, the extended capabilities of RSK’s bitcoin smart contract platform provide a practical means of utilizing Bitcoin as a decentralized finance ecosystem. The release of Money on Chain’s RDOC stablecoin provides another component that will increase the utility of bitcoin-based dApps and spur more developers to build on Bitcoin.