Rationalization of MOV JieDai protocol. What’s MOV JieDai protocol? | by La Capitale | The capital | June 2021
MOV JieDai protocol is a crypto asset charge protocol based mostly on the Bytom essential chain and Bytom layer2 Vapor aspect chain. Merely put, MOV truly realizes the lending service like a financial institution by way of a sensible contract based mostly charge algorithm mannequin. Customers can deposit, withdraw, and lend to earn curiosity. In fact, not like the credit score danger of conventional finance, outsized loans adopted by MOV can cut back the danger of on-chain default.
The benefits of MOV JieDai
On the spot mortgage and reimbursement, prompt deposit and withdrawal
MOV is predicated on the excessive efficiency Vapor sidechain, which has prompt affirmation. Depositors can withdraw principal and curiosity instantly after depositing cash, whereas debtors can shortly return borrowed cash and safe collateral.
No on-chain buying and selling charges, no deposit service charges
In comparison with borrowing and lending on Ethereum, MOV doesn’t cost any on-chain buying and selling charges for borrowings and deposits. On the similar time, solely 10% of the curiosity on the borrowed cash is charged as a platform service charge, and the deposit is just not charged any charges.
The world’s first DeFi public mortgage public sale software
The world’s first product interface helps liquidation asset public sale, reducing the utilization threshold, and extraordinary customers can take part, and winners are chosen by way of a random algorithm to make sure effectivity and fairness.
Separation of JieDai pool and assure pool to scale back danger
The JieDai MOV pool is separated from the collateral pool and the collateral pool can now not be used for loans, significantly decreasing the danger and stopping 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 ensured by the curiosity of customers who borrow cash. JieDai pool is allotted based mostly on the proportion of cash deposited by every deposit person in addition to curiosity. The variable rate of interest underneath completely different market provide and demand circumstances may be constructed by way of the phase operate, which might flexibly reply to excessive conditions.
Liquidation and public sale
MOV adopts the mechanism of over-collateralized loans and, in excessive circumstances, can present some solvency by liquidating the collateralized property.
MOV units a liquidation line to find out whether or not to liquidate. By evaluating the assure charge and the liquidation line, it units the valuation ranges of risk-free, low-risk, high-risk and notifies the person in time when a change in danger happens.
When it reaches the liquidation line, the system routinely auctions the secured property. For the reason that person has already obtained a reminder by way of a number of mechanisms, he’ll now not outline a buffer interval however will public sale it straight.
MOV introduces a random algorithm into the clearance protocol, and the likelihood of every bidder’s bid is equal. On the similar time, because of the margin system, malicious bidding is prevented.
It must be talked about that MOV will present the primary user-friendly public sale interface software within the DeFi area. Odd customers can take part within the public sale, and with a sure mechanism making certain the identical likelihood and alternative as API customers, it’ll additional enhance the effectivity of the public sale.
MOV JieDai ensures the protection of the system and customers’ funds by way of oversizing, separation of mortgage pool and collateral pool, all-weather alternate charge monitoring and danger administration system.
Over-collateralization is a typical observe in immediately’s DeFi lending business. As a result of the blockchain has a sure diploma of anonymity, it’s tough to pursue legal responsibility for breach of contract solely by way of credit score loans. Present mortgage merchandise resembling AAVE and Compound will combine the collateral pool with the mortgage pool, i.e. the person’s collateral will go into their corresponding mortgage pool, and the collateral can proceed for use as mortgage product. Whereas the effectivity is improved, it additionally permits the system to take extra danger and customers returned the borrowed components however have been unable to recuperate the guarantee. MOV separates the 2 and the collateral is now not on mortgage as a mortgage asset, making certain that the borrower can get their collateral again instantly after reimbursement.
MOV will monitor the alternate charge in actual time across the clock, discover the property that attain the c liquidation line on time, and liquidate to make sure enough funds within the mortgage pool.
On the similar time, MOV and SlowMist have entered into strategic cooperation to collectively shield the safety of MOV.
In comparison with present mortgage merchandise on Ethereum, MOV has pure benefits when it comes to efficiency and price. On the similar time, because of the innovation, it additionally has many constructive factors when it comes to clearance and security. By way of the cross-chain, MOV additionally integrates the ecosystems of BTC, LTC, DOT, complementing the mortgage merchandise of the non-Ethereum ecosystem.