Product Docs
MONEY is Moremoney USD
MONEY is the platform's issued ultrasound USD pegged stablecoin. MONEY is backed by a basket of decentralized crypto assets including AVAX, JOE, ETH, QI, and incentivised Trader Joe and Pangolin LP.
MONEY is an Avalanche-native stablecoin token similar to USDC, USDT, DAI. MONEY can be traded for other tokens or stablecoin or in DeFi: pairing for liquidity on AMMs, as collateral for borrowing, bonding for tokens, or held as a store of value.
MONEY Address: 0x0f577433bf59560ef2a79c124e9ff99fca258948

How MONEY Maintains Its Peg

The protocol’s stablecoin is backed by the value of the collateral that users deposit, as well as interest and farm reward earned by collateral. It can be traded for other stable and non-stable assets using decentralised exchanges.
MONEY is designed to maintain parity with USD. Since loans including minting fees are in excess of the amount withdrawn by the user, loan repayment (either manual or automatic) serves as a steady stream of demand for the stablecoin, providing support for the price via market mechanics beyond the backing value.
In case 1 MONEY < 1 USD it becomes attractive for users to buy MONEY from the open market to repay loan. Arbitrageurs also ensure that the US Dollar peg is maintained by buying up MONEY in the market when it is below peg and reselling when the peg is regained. The exact opposite is the case when MONEY is above the 1 USD peg.