Moonai Finance is a decentralized stablecoin project aimed at creating a stablecoin that is decentralized, capital-efficient, sustainable, scalable, and high-yield bearing. It achieves this by collateralizing Moonai USD by crypto and opposing hedging perpetual short positions on Injective decentralized exchange.
Currently, most stablecoins in the market can only combine at most two of the following criteria: decentralization, stability, and capital-efficiency. Moonai Finance addresses this issue by creating a truly decentralized, stable, and scalable solution that is also capital-efficient and high-yield bearing. Moonai USD (mUSD) is a unique stablecoin that is collateralized by crypto and opposing hedging perpetual short positions on decentralized exchanges, which allows for double-digit returns by staking assets in the delta-neutral position and manipulating short position funding rate.
Moonai Finance achieves its goals through three products: the core mUSD delta-neutral position generator to maintain the peg and generate yield, the rebalancer to maintain the peg during market movements, and the funding rate manipulator to generate additional yield from the short position.
The funds from a user are deposited to the Fund Orchestrator smart contract, which splits the funds based on risk control mechanisms to open several delta-neutral positions. The funds are then used to go short on the futures market while going long on the spot market. The funds purchased on the spot market are transferred to a staking app-chain like Stride to generate staking yield. Fund Orchestrator then mints 100 mUSD to the user for passive yield generation or further DeFi use.
Moonai Finance's mUSD is a game-changer in the stablecoin market, offering a solution that is decentralized, capital-efficient, sustainable, scalable, and high-yield bearing. It allows almost any PoS cryptocurrency to its backing list, providing a more accessible and flexible investment option for users. Moonai Finance's unique design provides significant benefits to the DeFi ecosystem, such as increased decentralization, capital efficiency, and yield generation potential, which can help attract more users to DeFi platforms, especially Cosmos Ecosystem.