Wuzhen Review | Cross-chain ecological stability coin "MOV" released

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On November 8th, at the World Blockchain Conference (Wuzhen), the cross-chain ecological stability coin MOV was released than the original team in the original special event, aiming to build a stable financial foundation that truly conforms to the future development of the blockchain. Facilities to promote the formation of a broader chain of multilateral trading systems. More than the original chain senior researcher Tom Liu gave a keynote speech detailing the design philosophy and operational mechanism of the MOV stable financial system.

Slide 2

When talking about the original intention of creating a stable currency system in a cross-chain ecosystem, Tom mentioned that a complete cross-chain complex not only contains “cross” but also “connected”, connecting diversified assets and connecting multilateral transactions. , settlement and trade, there is an organic connection and interaction between the mapped discrete digital assets, bringing a new application space and forming a modern financial system on the chain. The prosperity of a digital multilateral trading platform is inseparable from the construction of many financial infrastructures on the chain, from transactions to lending, from pricing to liquidation, from trading media to value storage, from currency issuance to financial intermediation. Establishing a unified stable currency system and clearing infrastructure on top of diversified high-value digital assets will have far-reaching implications for cross-chain complexes.

Slide 3

This time, the cross-chain eco-stable currency MOV released by the original team and the other existing stable currency projects have two significant differences in the fundamental design philosophy. First, the existing stable currency projects are mostly at the application level, and are more similar to a DAPP, but the MOV stable currency system is a big ecology, a grand and detailed infrastructure, and the infrastructure promotes the construction of a stable currency system. The stable currency reverses the evolution of infrastructure. Second, most of the stable coins will draw a lot of interest (the coinage tax) when they are first issued, but the MOV stable currency system will fully return the diversified income to the MOV ecological participants.

Slide 4

The MOV Stabilization Coin ecosystem consists of multiple participants, not only the three actors who directly participate in the stable currency system, but also third-party prophecy clusters, third-party clearing arbitrageurs, market makers, and applications. External cooperation roles such as Fang.

Tom explained that MOV and other stable currency systems are different in terms of fundamental stability mechanisms because they highlight the risk intervention system. “We don’t quite recognize the early days of the market, relying solely on a chain of algorithms or purely autonomous contractual democracy. We are able to withstand such a highly volatile market. We have a pool of risk funds, the source of which is the stabilization fee and friction fee charged to the ecology, part of which is used for risk reserves, and some of which will be used as incentive feedback to everyone."

03_Tom Liu

The MOV stable financial system will focus on building a risk-sensitive and rapid feedback mechanism, which will cooperate with the user-level comprehensive risk index. This is another major difference and consideration between MOV and other stable currency projects in the design of risk prevention mechanism. At present, the biggest problem with stable currency is how to bear the risk after the risk occurs. Some are based on collateral to clear the liquid, and some promise to be a 100% reserve mechanism. Whether it is true or not, there is no mechanism to guarantee, but the MOV stable currency system provides three levels. Clearing mechanism: L1 market arbitrage liquidation, L2 system overall liquidation and L3 risk debt liquidation. Each of these three types of clearing operations is designed to protect the fundamental interests of users.

Slide 8

Finally, Tom uses a formula to summarize the MOV stable currency mechanism, CR=PT. C stands for Big C, which is actually collateral and credit. It consists of two parts: collateral + MOV ecological subject credit. R, risk intervention system, P is the price of stable currency, and T is the circulation of stable currency. For example, in the scenario of maintaining the stability of the debt side (stable currency end) through the MOV “moderate” bond mechanism, no matter how much risk the market faces, as long as there is R, controlling the stability of the CR end, it can maintain P by stabilizing the liquidity. The price of the currency) is stable.

MOV Ecology creates a stable currency based on cross-chain assets. It will transcend the creation of a speculative asset, allowing diversified mainstream assets to form a value consensus and convergence under the framework of the folding synthesis, so that an “incarnation” currency can become “stable transfer”. “Debt supporting economic transactions” accelerates the promotion of stable currencies and business scenarios (chain and entity), bringing more credit expansion and social acceptance to cross-chain assets.