How Does MoneyOnChain Work?
MoneyOnChain is a Bitcoin-collateralized stablecoin protocol running on RSK (Rootstock), the Bitcoin sidechain. It issues DoC, a USD stablecoin backed by BTC, alongside BPro, a token that absorbs Bitcoin's volatility to maintain DoC's peg. With $39M TVL and operating since 2019, its B- grade reflects a proven dual-token design offset by custom oracle risk and limited RSK ecosystem adoption.
TVL
$44M
Sector
Stablecoin
Risk Grade
C+
Value Grade
D
Core Mechanisms
6.1.1
NovelDoC: Bitcoin-collateralized stablecoin pegged to USD via dual-token mechanism where BPro absorbs BTC volatility
While overcollateralized stablecoins are standard, the specific dual-token structure where BPro holders absorb volatility to provide DoC stability is a relatively unique design. The BPro token acts as a leveraged long BTC position that subsidizes DoC stability.
Custom (Volatility Absorption Token)
BPro: HODL+Earn token that absorbs BTC volatility and receives free leverage, passive income from traders, and platform fees
BPro is the volatility absorption layer. Holders receive free leverage from DoC minters, interest from traders, and MOC token incentives. Functionally similar to a leveraged BTC position.
5.1.1
MOC governance token with voting on protocol parameters and fee discounts for platform usage
Standard token-weighted governance. MOC holders vote on protocol changes and receive fee discounts when paying fees in MOC.
6.4.3
OMoC: custom decentralized oracle network for BTC/USD price feeds on RSK
Custom oracle network operated by the MoneyOnChain ecosystem. Smaller operator set than industry-standard oracles like Chainlink.
2.1.2
Percentage-based fees on minting/redeeming DoC and BPro, with MOC token discount
Standard fee model on protocol operations. MOC token holders receive discounts on these fees.
How the Pieces Interact
DoC stability depends on sufficient BPro demand. If BPro holders exit during a BTC crash, the volatility absorption buffer shrinks, potentially pushing DoC below its USD peg as the remaining collateral cannot absorb further BTC price declines.
The custom OMoC oracle feeds directly into collateral ratio calculations for DoC and BPro. Oracle manipulation or delayed updates during rapid BTC price movements could cause incorrect collateral assessments, delaying necessary liquidations or enabling arbitrage.
BPro holders have leveraged BTC exposure. During extreme BTC drawdowns (>50%), BPro value can approach zero, eliminating the volatility buffer that protects DoC stability.
Limited RSK ecosystem adoption restricts DoC and BPro utility. Low DeFi composability reduces demand for both tokens, weakening the dual-token stability model that relies on active participation from both sides.
What Could Go Wrong
- DoC is a USD stablecoin backed solely by Bitcoin collateral on RSK. During sharp BTC price declines, the system's collateral coverage can drop rapidly, and BPro holders who absorb volatility may face significant losses or choose to exit, reducing the buffer that protects DoC stability.
- The protocol relies on its own decentralized oracle system (OMoC) for BTC/USD pricing. As a custom oracle with a smaller operator set than Chainlink, it may be more susceptible to manipulation or downtime, particularly during high-volatility periods when accurate pricing is most critical.
- The protocol runs on RSK (Rootstock), a Bitcoin sidechain with merge-mining security. RSK has significantly less adoption and developer activity than Ethereum L2s, creating ecosystem risk and limiting DeFi composability for DoC and BPro tokens.
- The dual-token model requires sufficient BPro demand to absorb BTC volatility for DoC holders. If BPro demand declines, the system's overcollateralization ratio drops, potentially threatening DoC's USD peg during market stress.
BPro Exodus During BTC Crash Destabilizes DoC Peg
ModerateTrigger: BTC drops more than 40% within 7 days while BPro redemptions exceed 30% of the total BPro supply, depleting the volatility absorption buffer below the minimum collateralization threshold for DoC.
- 1.Sharp BTC price decline reduces total system collateral value — BPro holders face leveraged losses; redemption incentive increases
- 2.BPro holders rush to redeem, reducing the volatility buffer — System overcollateralization ratio drops below target levels
- 3.DoC collateral coverage approaches 1:1 or falls below — DoC begins trading below $1 on secondary markets as peg confidence erodes
- 4.DoC holders attempt to redeem at par, but insufficient BTC collateral remains — Redemption queue forms; haircuts applied to DoC redemptions
- 5.Protocol enters emergency mode with restricted operations — TVL collapses as remaining participants exit to avoid further losses
Risk Profile at a Glance
Overall: C+ (37/100)
Lower score = safer