This new protocol allows loans and credits with bitcoin

Key facts:

The protocol is called Money on Chain and allows you to market stablecoins backed up in Bitcoin.

The platform has two tokens, the DoC anchored to the dollar and the BPRO that generates bitcoin liabilities.

A new platform for anchored cryptocurrencies or stablecoins, backed by smart contracts that use bitcoins, is already active in the RSK network. Today, December 12, the Money on Chain and IOVLabs companies confirmed the launch of the initiative, after 11 months of development of the new software.

Money on Chain, translated into Spanish as "money in the chain", is a protocol that uses RSK smart contracts to generate cryptocurrencies stable or anchored to the price of another asset (stablecoin). In this way, crypto assets are collapsed in Bitcoin, providing decentralized financial services for BTC holders.

The protocol consists of two different tokens, called Dollar on Chain (DoC) and BitPRO (BPRO). The DoC token is anchored to the value of the US dollar, such as the stablecoins Tether, USDC and DAI. Users can send, receive or save in DoC by using the protocol, the company says.

On the other hand, bitcoin holders can generate liabilities with their saved cryptocurrencies, using the BPRO token. Any user who purchases BPRO will receive a percentage of the fees charged by the Money on Chain platform. You will also receive interest rate gains and leverage on the price of Bitcoin.

The developers, both RSK and Money on Chain, were working on the execution of this protocol for 11 months. During this period they carried out several simulations, functional tests and two audits before launching this Alpha version to the market.

The idea of creators of Money on Chain and IOVLabs is to generate a decentralized financial services (DeFi) platform for bitcoin holders. Max Cajurzaa, CEO of Money on Chain, stressed that through this platform you can develop a market for loans, credits and commerce for bitcoin users. An idea that has also been explored by Venezuelan entrepreneur Mauricio Di Bartolomeo, in his Ledn project.