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World Blockchain Conference| Introducing Cross-chain Stablecoin “MOV”

On November 8th, Bytom hosted a special meetup at the World Blockchain Conference. Bytom’s team introduced a cross-chain stable coin: MOV. MOV aims at building a reliable financial infrastructure that truly aligns with the future of blockchain, while enables more use cases on blockchain. Tom Liu, senior researcher at Bytom talked about the designing concept and operation mechanism behind MOV’s system.

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As Tom spoke about the original intention to establish a stable coin project within the cross-chain ecosystem, he said that a complete cross-chain infrastructure is also about connecting different types of assets together. Through connecting multi-lateral exchange, liquidation and trade, crypto assets will have the opportunity to interact with each other, which will enable some brand-new use cases, then create a new financial system on blockchain. The prosperity of a multi literal crypto asset trading platform requires solid basic infrastructure. From trading to lending, to price setting and liquidation, a unified stable coin system and liquidation basic infrastructure means a lot to the cross chain unified body.

Bytom’s stable coin project MOV differentiates from the other existing projects from 2 major aspects. First, most stable coin projects are more like a DAPP, but MOV is building a stable coin ecosystem, this will include solid, detailed basic infrastructure. The basic infrastructure and stable coin system are not independent of each other in our system. Second, most stable coin will take a lot of profit as they ICO, while MOV’s stable coin system will eventually give the profit back to the community.

MOV’s stable coin system involves numerous participants, such as the debtor, creditor, lender. Third-party oracle community and outside partners will also be involved in the system. Tom then further explained the difference between MOV and other stable coin systems, MOV highlights the risk prevention system. Tom said “we do not believe that algorithms on blockchains can shield the users from this extremely unstable market in the early stage, we have an asset pool set aside as insurance, also to reward the community.”

MOV’s stable coin system will focus on building a risk-sensitive feedback mechanism, it will also cooperate with users’ comprehensive risk analysis. The biggest issue for stable coin right now is how to bear the consequences after something bad happens. Some of them will do the liquidation base on mortgage, some promise 100% reserve mechanism. MOV’s system offers 3 different layers of liquidation mechanism: market, system and risky debt. The system is designed to protect the best interests of our users.

In the end, Tom used a formula to explain MOV’s stable coin system: CR=PT. C is the combination of credit and mortgage security, R is the risk prevention system, P is the price of stable coin, T is the traffic flow of stable coin in market. No matter how risky the market is, as long as R is there, CR will remain stable, therefore will be able to maintain the price of stable coin.

MOV’s ecosystem will create a new type of asset base on cross chain, enables cryptocurrencies to support numerous economic activities. What is more, it will also accelerate the acceptance process and use case exploration of stable coin.

COMMENTS(1)

  • LabelMen
    4 weeks ago LabelMen

    I am watching with great interest the development of the Bytom blockchain and marvel at the team’s ability to work! I am intrigued by the news I read. It’s very interesting what will happen after November 22nd 🙂

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