Research Summary
The report discusses Mori Finance, a protocol within the decentralized finance (DeFi) landscape that aims to revolutionize stable assets. Mori introduces a unique stable asset framework that splits Ethereum’s inherent volatility between a low-volatility stabilized asset and a high-volatility derivative. The protocol offers users the ability to craft asset twins, safeguarding against Ethereum price fluctuations. Mori’s collateral framework currently finds its foundation in stETH, but it provides users the autonomy to customize the partitioning of Ethereum into ETHS and ETHC.
Key Takeaways
Mori’s Unique Stable Asset Framework
- Splitting Ethereum’s Volatility: Mori’s system splits Ethereum’s inherent volatility between a low-volatility stabilized asset and a high-volatility derivative, offering users a diversified risk-return option.
- Asset Twins: Mori offers users the unique ability to craft asset twins, safeguarding against Ethereum price fluctuations and effectively mitigating liquidation risk.
- Customizable Partitioning: While Mori’s collateral framework currently finds its foundation in stETH, it provides users the autonomy to customize the partitioning of Ethereum into ETHS and ETHC.
ETHS and ETHC
- ETHS: ETHS functions akin to a stablecoin with reduced volatility characteristics, offering impressive capital efficiency and robust scalability.
- ETHC: ETHC serves users who seek a more aggressive stance with a leveraged position on Ethereum, offering minimal fees and a diminished liquidation threat.
- Emergency Brake Feature: ETHC comes equipped with an “emergency brake” feature, which in high-risk scenarios, can dial down the leverage associated with ETHC, acting as a safety net for users.
$MORI Token
- Staking Rewards: Once users lock $MORI, they’re rewarded with xMORI, a non-transferable, escrowed governance token that mirrors the value of staked $MORI.
- Profit Sharing: xMORI enables holders to get a slice of the mint/redeem fee pie, generated in the form of ETH/LSD.
- Active Governance: xMORI serves as the governance token, granting its holders a seat at the decision-making table of the protocol.
Actionable Insights
- Investigate the Potential of Mori: With its unique approach to stable assets and its innovative features, Mori presents a compelling case for further exploration within the DeFi landscape.
- Consider the Benefits of ETHS and ETHC: The unique characteristics of ETHS and ETHC, including reduced volatility and leveraged positions on Ethereum, respectively, offer distinct advantages for different types of users.
- Explore the Utility of $MORI: The $MORI token offers a range of benefits, including profit sharing and active governance, which could be of interest to potential investors.
