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Rhythm AMA | synthetic assets fair will not become the mainstream?

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Mobius Finance will launch the first version of the product in mid-October, and will offer metaverse trading services in the future

September 22, 18:00, Mobius Finance CEO Pedro Torres speaks at Rhythm AMA with Rhythm BlockBeats on "Will Synthetic Asset Trading Go Mainstream?" Conducted an online exchange on the topic.

Synthetic asset is one of the most complex product types in the DeFi world. In essence, it is a set of over-mortgaged model, with the help of external decentralized predictor to provide data, and the off-chain assets are integrated into the in-chain mapped asset. For example, users can pledge ETH and issue moTSLA in the chain with the offer of TSLA shares provided by ChainLink. MoTSLA price fluctuations are consistent with true TSLA price fluctuations. This will greatly expand the range of assets in the chain and the overall asset scale.

As the world's first synthetic asset platform built on Polygon and Cardano ecosystems, Mobius Finance has a strong voice in this space. In this AMA, Pedro Torres expresses his views on the future development of the industry on the topic of synthetic asset trading.

The following is the content of this AMA, which is sorted out by Rhythm BlockBeats:

BlockBeats: Officially, Mobius Finance aims to create a decentralized multi-asset transaction protocol, and Mobius has built a beta version on Polygon (pre-Matic). Layer 2, including Polygon, Arbitrum, Opitimism, etc., is a hot topic recently, attracting a lot of funds. Why Mobius chooses to create on Polygon?

Pedro Torres:Our goal is to be the largest unlimited asset trading protocol in the metasverse, so we need to choose a more scalable underlying protocol.

Polygon positioning is not a single side chain or layer2 protocol. Polygon's goal is to integrate multiple capacity expansion solutions. So if we choose Polygon, it means we can save a lot of migration costs in the future as well as have more scalability.

And we don't have a strong competitor in the Polygon ecosystem, which helps us get a cold start faster.

BlockBeats: Polygon, as a Layer 2 protocol that has issued its own tokens, is less attractive than Arbitrum, Opitimism and other Layer 2 protocols that have not issued tokens in terms of users' emotions. Moving forward, will Mobius consider compatibility with other Layer 2 protocols?

Pedro Torres:For the development of the project, there are many challenges in choosing a new underlying protocol. We agree that the sentiment of polygon users is weaker than that of Arbitrum, Opitimism, etc. However, the challenge period of such layer2 protocol is too long, and asset withdrawal usually takes 7 days. For the time being, it will affect the trading experience of synthetic assets. The cost of interaction is actually higher than polygon. In the long term, we are more optimistic about mature protocols like Polygon and Cardano.

In the future, we will certainly continue to expand compatible with new protocols, but not necessarily Arbitrum, Opitimism.

BlockBeats: Synthetic assets in the chain have higher requirements for liquidity, and at the same time, it is more difficult for users to popular science. How does Mobius solve these two problems?

Pedro Torres:What we need to explain is the first problem: on-chain synthetic assets have higher liquidity requirements. This does not affect us, because our trading model is based on the quotation trading model of global debt, theoretically unlimited liquidity. This is not like Mirror or other products that need to be traded on swap. They do need crazy incentives to trade a lot of synthetic assets right. We just need to incentivise the act of issuing mousds.

Second question: First of all, we have written a very detailed user guide to help users understand our various functions step by step. Second, our UI is much easier to use than other products, so you can compare it yourself. Third, we have a dedicated research team within the Mobius Foundation that will publish in-depth reports on synthetic assets and the DeFi market. Through more objective and rational in-depth reports to help users understand.

BlockBeats: What are Mobius' advantages over Synthetix and Mirror Protocol?

Pedro Torres:Mobius is innovative in a number of ways, in addition to deploying on networks with lower costs and better experiences.

(1) Mobius supports multiple collateral from the very beginning, which helps Mobius surpass our competitors by many times in terms of the size of assets it can carry.

(2) The original ADB algorithm can solve the debt fluctuation problem that other synthetic assets cannot solve. The advantage of such an algorithm is that our product is less risky, and it is easier to add more trading pairs, making our product not only a synthetic asset product, but also a better experience of non-slippery exchange.

(3) Modular design with lower architecture and support for short selling mechanism based on mortgage model. This will allow Mobius to quickly support trading of indices, leverage and futures contracts. Imagine going long the entire DeFi or NFT market on blockchain.

(4) Deflationary internal circular economy model can enable Taiwan dollar to capture more value.

BlockBeats: Contrary to what many users think, casting moASSETS is actually a short position, while buying moASSETS is a long position. This means that users do not have a strong willingness to participate in the casting. Therefore, all major synthetic asset agreements provide certain incentives to the casting users. What kind of incentives does Mobius offer to the users who participate in the casting of moASSETS?

Pedro Torres:This is a good question that most users really don't understand. If you are casting moASSETS on the Mirror, you are actually shorting. This leads to a large number of users to bear unnecessary losses.

So first of all, our platform design is different from theirs. We need the user to pledge some kind of asset, and the only thing that can be cast is a stable asset like moUSD. When users use staboins to mint staboins, there is virtually no question of shorting an asset. Once a user has cast a moUSD, we offer a slip-free trading function based on the quote trading model, and anyone with a moUSD can purchase moASSETS through this system.

This is tantamount to separating the casting function from the trading function. The only thing foundry users need to worry about is the change in overall debt. And for this problem, we created ADB algorithm. Also further dispel the user's worries.

So we found that foundry users and trading users are completely complementary to each other in the market. If the trade demand is high (because there is no slippage and you can trade a lot of assets that UnisWAp doesn't have) then the user demand for moUSD is high, resulting in a premium for the outside moUSD/USDC pair. At this point, casting users can cast more Mousds in the form of casting at the price of $1 predictor to arbitrage the outside market, wiping out the moUSD premium.

So, in Mobius's system, as long as the demand for trading is there, the demand for casting must be there. Therefore, we have an economic incentive to trade as well as to forge. Make the whole ecology produce inner cycle.

BlockBeats: moASSETS anchor the stock price through the predictor. When the market is closed, is there any possibility of price manipulation? Can there be arbitrage between the stock market and Mobius?

Pedro Torres:First of all, there will be the problem of closing markets. But appear the circumstance of arbitrage should be concerned with the demand of external dish. When the official release is made, the contract will automatically stop trading if the external price has not been updated for a period of time. That is, stock tokens will be closed just like normal stocks. Of course, the user can trade in the external disk, and may form a market on the chain.

In summary, the stock market and stock tokens on Mobius will be closed.

BlockBeats: How does Mobius deal with volatility?

Pedro Torres:There are two main effects of violent market fluctuations:

The first is the liquidation risk of collateral: we have three special treatments.

(1) The liquidation of Mobius is partial liquidation, and the liquidation mechanism will not liquidate all the collateral at one time. This can effectively reduce the stampede caused by clearing.

(2) Mobius would say that part of the settlement penalty is stored in a settlement insurance pool. Even when the market is empty there are pools of insurance premiums that are cleared regardless of loss.

(3) The multi-collateral model also provides users with more collateral choices. Users can even use stable currency to pledge, so that the liquidation risk will be very low. And all other collateral is carried at relatively high rates.

BlockBeats: The current beta version of Mobius has low liquidity and TVL. Will there be any official operation activities to encourage users to participate?

Pedro Torres:(1) We already did a whitelist test in May. 5000 users signed up for that test, and 500 were selected to participate in the test.

(2) We expect to launch the product in mid-October, and a joint public test will be carried out before launch. The specific details are to be determined.

BlockBeats: Mobius has issued the token MOT. What is the role of MOT in the Mobius ecosystem?

Pedro Torres:(1) Firstly, MOT is the governance token of Mobius. By mortgating MOT, users can participate in the governance of Mobius, such as modifying main parameters, adding new transaction pairs, unlocking tokens in DAO's Treasury, etc.

(2) MOT also plays an incentive and regulatory role in the whole ecology. On the one hand, MOT can be used to stimulate liquidity, and on the other hand, it can regulate ecological mortgage rate, net position and other important parameters through incentives for different transaction pairs or collateral.

(3) MOT is also one of the collateral. 90% of the platform revenue will be used to buy back and destroy THE MOT. In order to achieve the purpose of deflation, further enhance the value of MOT.

BlockBeats: According to public sources, Mobius has received funding from Magnus Capital, AU21 Capital and others, so the team doesn't have to worry about development cost pressures in the short term. What's next for Mobius?

Pedro Torres:We will launch the first version of the product in mid-October, followed by the launch of various racetrack exponential composite assets. We will go derivatives trading in early 2022. In the future Mobius will provide full trading capabilities, offering NFT as collateral and offering metacosmic asset trading.