{"id":"defimoney","title":"Defi.money","content":"**Defi.money** was a cross-chain, decentralized [stablecoin](https://iq.wiki/wiki/stablecoin) protocol centered around its USD-denominated [stablecoin](https://iq.wiki/wiki/stablecoin), MONEY. It operated using a Collateralized Debt Position (CDP) model built on a licensed refactor of [Curve Finance's](https://iq.wiki/wiki/curve-finance) [`crvUSD`](https://iq.wiki/wiki/crvusd) architecture. The protocol ceased operations in mid-2025 after failing to achieve sufficient product-market fit. [\\[2\\]](#cite-id-HLy2puT96vKN0RZO)​\n\n## Overview\n\nDefi.Money is a protocol that issues MONEY, a USD-denominated, decentralized [stablecoin](https://iq.wiki/wiki/stablecoin). MONEY is cross-chain and compatible with any [EVM](https://iq.wiki/wiki/ethereum-virtual-machine-evm) blockchain, with a focus on [Layer 2](https://iq.wiki/wiki/layer-2) solutions for lower transaction costs. It is CDP-based, allowing creation from a variety of [collateral](https://iq.wiki/wiki/collateral) types, including [altcoins](https://iq.wiki/wiki/altcoin), LP tokens, and tokenized [real-world assets](https://iq.wiki/wiki/real-world-assets-rwas). The protocol is built on a licensed refactor of [Curve Finance’s](https://iq.wiki/wiki/curve-finance) [crvUSD](https://iq.wiki/wiki/crvusd) architecture. It features an Automated Loan Protection system that automatically manages collateral to protect users from short-term price volatility. Defi.Money simplifies interactions with the protocol via one-click ZAPs, supports exotic [collateral](https://iq.wiki/wiki/collateral), and enables seamless cross-chain liquidity, aiming to provide low-cost, permissionless, and censorship-resistant access to [stablecoins](https://iq.wiki/wiki/stablecoin).  [\\[1\\]](#cite-id-2ddDeJWbhzZilPfF) \n\n### Sunsetting\n\nDefi.money announced its shutdown on May 7, 2025, citing a lack of product-market fit and insufficient traction in the competitive CDP [stablecoin](https://iq.wiki/wiki/stablecoin) landscape. The team determined that continuing operations without achieving sustainable growth, even with potential token launches or [yield farming](https://iq.wiki/wiki/yield-farming), would not be responsible for the community or the broader [DeFi](https://iq.wiki/wiki/defi) ecosystem. The user interface and all platform services, including borrowing, leverage, and [staking](https://iq.wiki/wiki/staking), were scheduled to go offline on June 1, 2025. However, the underlying [smart contracts](https://iq.wiki/wiki/smart-contract) remained operational, allowing users to interact directly and withdraw funds. Users were advised to remove deposits from [liquidity pools](https://iq.wiki/wiki/liquidity-pool) and platform positions before the UI was deprecated. Post-shutdown, there was no further development, updates, or team support, and community channels were also decommissioned. While the protocol ceased operations, all [smart contracts](https://iq.wiki/wiki/smart-contract) continued to function without incidents or loss of funds, and the team committed to open-sourcing its protocol and UI/UX features to support the future development of the [Curve](https://iq.wiki/wiki/curve-finance) ecosystem and related cross-chain [stablecoin](https://iq.wiki/wiki/stablecoin) infrastructure. [\\[2\\]](#cite-id-HLy2puT96vKN0RZO) \n\n## Technology\n\n### Peg Keepers\n\nPeg Keepers are [smart contracts](https://iq.wiki/wiki/smart-contract) that help maintain the MONEY [stablecoin](https://iq.wiki/wiki/stablecoin) at its 1 USD peg by managing specific [Curve](https://iq.wiki/wiki/curve-finance) [AMM](https://iq.wiki/wiki/automated-market-maker) pools, each containing MONEY and another [stablecoin](https://iq.wiki/wiki/stablecoin) that is expected to maintain its peg. They continuously check whether the pool has more or less MONEY relative to the other asset and, if necessary, withdraw or deposit MONEY to restore a roughly 50/50 balance, aligning MONEY’s price with the paired [stablecoin](https://iq.wiki/wiki/stablecoin). Anyone can call the contract to perform these adjustments and earn a portion of the profits generated. Currently, the protocol operates five Peg Keepers on [Optimism](https://iq.wiki/wiki/optimism) and five on [Arbitrum](https://iq.wiki/wiki/arbitrum), each managing pools for [crvUSD](https://iq.wiki/wiki/crvusd)/MONEY, [USDT](https://iq.wiki/wiki/tether)/MONEY, [USDC](https://iq.wiki/wiki/usdc)/MONEY, [DAI](https://iq.wiki/wiki/dai)/MONEY, and [FRAX](https://iq.wiki/wiki/frax)/MONEY. All Peg Keepers have a debt limit of 1,000,000 MONEY, and the outstanding debt influences borrowing rates within the protocol. [\\[8\\]](#cite-id-eIi4LFIMqbgDtHdc) \n\n### Oracles\n\nDefi.money developed a custom Oracle system optimized for [Layer 2](https://iq.wiki/wiki/layer-2) and sidechain environments, where gas costs are low. The [Oracle](https://iq.wiki/wiki/oracle) calculates an exponential moving average (EMA) from [Chainlink](https://iq.wiki/wiki/chainlink) feeds to smooth out jittery price data, particularly important for less-liquid assets, thereby preventing unnecessary collateral trades and protecting users during loan management. For chains not supported by [Chainlink](https://iq.wiki/wiki/chainlink), defi.money relies on [RedStone Oracles](https://iq.wiki/wiki/redstone-oracles) using a push model, where data is regularly updated on-chain via a relayer that enforces predefined conditions, ensuring reliable, timely price feeds. [\\[9\\]](#cite-id-5qnFBXZapoeFJE98) \n\n### Market Hooks\n\nDefi.money developed Market Hooks as modular contracts that can modify or trigger effects in the protocol based on predefined conditions, without requiring changes to the core contracts. These hooks allow the protocol to add new features, implement user-specific adjustments, and enable analytics in a flexible, upgradeable manner. An example is the L2SequencerUptimeHook, which halts [minting](https://iq.wiki/wiki/minting) of MONEY and withdrawals of collateral if a [Layer 2](https://iq.wiki/wiki/layer-2) sequencer goes offline, resuming 30 minutes after the sequencer is back online. This prevents users from exploiting outdated [oracle](https://iq.wiki/wiki/oracle) prices or manipulating the protocol during network downtime, while still permitting deposits, repayments, and loan closures. Other potential uses of market hooks include dynamic fee adjustments, user discounts for [staking](https://iq.wiki/wiki/staking), and whitelisting, making them a versatile tool for risk management and protocol enhancement. [\\[10\\]](#cite-id-AQw64mpj949N0XMM) \n\n## MONEY\n\nMONEY is a USD-denominated, decentralized stablecoin that is interoperable across all [EVM](https://iq.wiki/wiki/ethereum-virtual-machine-evm)-compatible [blockchains](https://iq.wiki/wiki/blockchain). It is permissionless, censorship-resistant, and optimized for [Layer 2](https://iq.wiki/wiki/layer-2) chains such as [Optimism](https://iq.wiki/wiki/optimism), [Arbitrum](https://iq.wiki/wiki/arbitrum), and [Base](https://iq.wiki/wiki/base), allowing for lower-cost creation and management. MONEY is collateralized through a system of Collateralized Debt Positions (CDPs), in which users deposit assets such as [BTC](https://iq.wiki/wiki/bitcoin-btc) or [ETH](https://iq.wiki/wiki/ethereum) to [mint](https://iq.wiki/wiki/minting) new MONEY. The deposited [collateral](https://iq.wiki/wiki/collateral) is slightly over the amount borrowed, providing a safety margin. If its value falls below a certain threshold, the [smart contract](https://iq.wiki/wiki/smart-contract) automatically trades portions of the [collateral](https://iq.wiki/wiki/collateral) to maintain full backing. \n\nThe protocol’s Automated Loan Protection system structures collateral into multiple bands within a [liquidity pool](https://iq.wiki/wiki/liquidity-pool), spreading potential liquidation points over a range. This system allows collateral to be converted gradually rather than liquidated instantly, reducing the risk of short-term price volatility. If [collateral](https://iq.wiki/wiki/collateral) value recovers, the [smart contract](https://iq.wiki/wiki/smart-contract) can reconvert it, ensuring users’ positions remain secure while maintaining efficiency and scalability. This combination of CDP-based overcollateralization and Automated Loan Protection distinguishes MONEY from other [stablecoins](https://iq.wiki/wiki/stablecoin), providing a decentralized, transparent, and self-correcting mechanism to preserve the USD peg while enabling flexible, scalable use of [collateral](https://iq.wiki/wiki/collateral). [\\[3\\]](#cite-id-ePtoA47Oy6INcYk3) [\\[7\\]](#cite-id-4LT9mMODyKeacmNa) \n\n### sMONEY\n\nsMONEY is a yield-bearing version of MONEY that accrues value over time through a share-price model, where 1 sMONEY initially equals 1 MONEY, and the exchange rate increases as yield accumulates. The yield paid to sMONEY holders comes from protocol revenue. It is adjusted based on the trading price of MONEY: the further below 1 MONEY trades, the higher the revenue allocated to sMONEY, which helps maintain the peg by incentivizing users to [stake](https://iq.wiki/wiki/staking) MONEY. sMONEY is created by wrapping MONEY through the protocol’s Earn interface, initially on the [Optimism](https://iq.wiki/wiki/optimism) chain, with the ability to bridge to other supported chains. To convert sMONEY back into MONEY, users must [burn](https://iq.wiki/wiki/token-burn) their sMONEY, which initiates a 7-day cooldown. If additional sMONEY is burned during an ongoing cooldown, the period resets for that address, though it can be avoided by using a separate address. After the cooldown concludes, the underlying MONEY can be withdrawn. [\\[4\\]](#cite-id-KPFemsBJBjPhQKpI) ","summary":"Defi.money was a cross-chain, decentralized stablecoin protocol for the $MONEY token. 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