MOAR, a first-of-its-kind, derivative-aware, capital-efficient DeFi lending platform, has secured a private round from notable investors, such as Spark Digital, 3Commas, Moonwhale, Stakely, Kyros Ventures, Ruby Capital, AU21 Capital, Paribus Ventures, Ape Capital, X21, Magnus Capital, Prometeus Labs, Black Edge Capital and more.
DeFi’s growth and challenges
The meteoric rise of decentralized finance over the past year has been extraordinary. The total value locked in DeFi is around $46 billion. Lending, a core primitive of financial infrastructure, has absorbed the most DeFi capital, with roughly $23 billion (50%) of DeFi’s TVL.
Despite its voracious pace, it’s clear that DeFi’s remarkable growth has reached a form of invisible asymptote. Challenges include inefficient capital utilization due to over-collateralization, limited use of financial derivatives well-proven by TradFi, siloed protocols, prohibitive gas costs and smart contract event risk.
MOAR: Multi-asset optimized automatic return
To address these challenges, MOAR brings the best of TradFi instruments, such as options and interest rate swaps, into the DeFi world, increasing DeFi’s capital efficiency. In addition, MOAR intends to build on the maturing cross-chain protocols and address constraints, such as high gas costs and limited asset exchange, to create a borderless lending platform.
- Multi-asset: Not only will multiple cryptocurrencies be supported as we build on cross-chain protocols but also multiple asset types of those currencies.
- Optimized: As a nod to our roots of Union’s collateral optimization protection, MOAR is about optimizing capital efficiency. The platform optimizes collateral utilization, return streams, gas efficiency, liquidation protection and more.
- Automatic: Smart contracts have enabled disruptive automation in finance and other industries. This automatization is still split across different projects that, for the average DeFi consumer, make them inaccessible. MOAR leverages composability to create a one-stop, one-click experience for mass adoption.
- Return: MOAR provides decentralized money-market lending returns enhanced with sophisticated financial tooling and DeFi Protection, such as Union’s crypto default swaps.
“MOAR will enable the same 10x increase of DeFi’s TVL that derivatives brought to traditional finance over the past two decades. Using decentralized options to hedge collateral positions and interest rate swaps to let the industry swap between fixed-term deposits and floating rates with one-click usability, MOAR is perfectly positioned for DeFi’s next wave of adoption.”
— John Liu, project lead of MOAR
MOAR — Testnet imminent
MOAR is built on the latest version of Solidity, can handle ERC-721 (the token standard for nonfungible tokens), and fully supports Union Finance’s C-OP instrument (a decentralized option primitive) for collateral optimization natively. With C-OP, MOAR can offer supported assets borrow factors of 100%. For every one dollar of asset value deposited, a user could borrow one dollar value worth of collateral.
Built on Ethereum to capture the majority of DeFi activity today, Phase 1 of MOAR has an April 2021 target launch for its tesnet and will include:
- User-friendly front-end application on top of smart contracts.
- Complete lending features: deposits, withdrawals, borrowing, payback.
- One-click C-OP purchase for collateral optimization.
- Liquidation algorithms that can account for C-OP adjustments to capital and minimize liquidation of non-derivative assets.
The Ethereum mainnet is scheduled for Q2 2021. Q3 targets include liquidation hedges, fixed-term deposits and interest rate swaps. Q4 feature targets will include layer-two integration, a cross-chain testnet (Polkadot) and integrated DeFi protection via Union’s U-CDS offerings.
MOAR will emphasize a user-friendly front end replete with features like one-click capital optimized borrowing, yield strategy access, a proprietary liquidation program, embedded derivative support, DEX integration, structured credit products, interest rate swaps, term deposits and cross-chain connections to Bnincae Smart Chain and Polkadot — with more layer ones planned for the future.