Moar AMA Summary Recap with Shin Chan Community
We held a live AMA with John Liu, Project Lead of Moar on 7th April 10:00 PM (UTC+8). Here’s the recap for those who missed it.
JH| Shin Chan: Can you introduce yourself and the team background?
John| Moar: I am John, project lead for MOAR. I hail from Wall Street with 9 years trading alternative products and derivatives and 10 years building products crossing the gamut of operations, risk, and trading for the industry.
For the last 3 years I have been “full-on” blockchain, leading product organizations and strategy at public protocols and advising various digital asset startups. I am currently CPO of UNION, a project building cutting edge protection products for DeFi, which is also the genesis of MOAR.
JH| Shin Chan: Do you have any news about Moar would like to share with us?
John| Moar: Things are moving very quickly, and we will have news on our IDO soon along with other partners in our project.
For now, however, we have to stay quiet. Expect information next week!
We just announced our spin-off from UNION yesterday. So one can imagine, there are many questions.
JH| Shin Chan: can you explain more about MOAR to our community?
John| Moar: The TLDR Version:
MOAR is the first-of-its-kind, derivative-aware, capital-efficient lending platform.
MOAR brings the best of TradFi instruments such as options and interest rate swaps into the DeFi world, increasing capital efficiency of DeFi’s assets.
At the same time, MOAR’s goal is to build on the maturing cross-chain protocols, both in the aspects of technology and ecosystem growth, and address constraints such as high gas costs and limited asset exchange, to create a borderless lending platform.
DeFi lending is entering the next wave of evolution, and MOAR is built to capture the wave of DeFi 2.0 adoption.
AMA Twitter Section Begin:
Q1： “You point out that in this association between MOAR and UNION both will be highly benefited, but could you really give us a little more detail about that association? Could it be that if the value of the tokens of one of the projects goes up, the other will go up proportionally?”
John| Moar: Hitting me with the hard questions first!
First, let me begin with UNION’s and MOAR’s respective goals.
UNION’s focus has been and remains about bundled protection.
The origins of MOAR, ULend, was to showcase UNION’s protection product (starting with UNION’s revolutionary capital efficiency product, C-OP) so that other lending platforms can utilize ULend as guidebook on how to integrate UNION’s products.
The main purpose of ULend was to drive adoption of UNION products, which remains a key purpose of MOAR.
However, as a standalone project, MOAR will push the boundaries of lending, focusing on growing TVL as a lending platform that utilizes UNION products.
This brings us to the mutual benefits:
The more TVL on MOAR, the more use there is of UNION, the more people will learn of UNION.
Likewise, the more products UNION comes with, the more benefits MOAR will have due to the collaborative nature of the two products and the “day 1 compatibility” of MOAR with UNION.
The symbiotic relationship is powerful — in essence doubling the size of ecosystem reach.
Q2: "One of the features that MOAR Finance offers is Lending. I see most projects only benefit lenders and forget about borrowers. Is your project like that? What do you offer borrowers?”
John| Moar: MOAR’s use of UNION’s C-OP, which increases capital efficiency, is specifically to benefit borrowers while still providing lenders safety.
Today, borrowers often have to over-collateralize loans. In other words, for every $0.5 of assets, a borrower can borrow $1. That’s a lot of trapped capital which severely restricts borrower.
With MOAR’s liquidity algorithms fully aware of C-OP, a borrower could purchase $1 for every $1 of collateral with the purchase of C-OP.
A borrower can choose to use this extra borrowing power to borrow more assets -or- lower the risk of liquidation by having a larger liquidity buffer for the same amount of assets they had previously deposited.
Other items in MOAR’s roadmap, such as interest rate swaps and fixed term deposits, benefit both borrowers and lenders alike with a certainty in the rates they are getting.
As a borrower, it becomes difficult to manage costs if they are floating daily between for example 5% and 20%. Often, a borrower prefers certainty over the term they are borrowing, say a flat rate of 7%.
This is just a glimpse of all the borrower benefits offered by MOAR.
Q3: "The acronym MOAR stands for “Multi-asset Optimized Automatic Return”. Can you explain a little bit what this means? What are the use cases for MOAR in the growing DeFi ecosystem?”
John| Moar: Certainly, MOAR has a tongue in cheek acronym. But behind the humor is a meaningful implementation. By explaining the acronym, the use cases for MOAR in DeFi lending will speak for itself.
Not only will multiple cryptocurrencies be supported, but also multiple asset types of those currencies.
Starting with option asset types in the form of C-OP, MOAR will expand to other derivatives, such as rate swaps, bringing even more TradFi instruments into DeFi.
In a nod to our roots of C-OP (Collateral Optimization Protection), MOAR is about optimizing capital efficiency.
The platform seeks to optimize collateral utilization, return streams, gas efficiency, liquidation protection, and more.
Smart contracts have enabled disruptive automation in finance and other industries. However, those automations are still split across different projects that for the average DeFi consumer, make them inaccessible.
MOAR leverages composability to create a one-stop, one-click experience for mass adoption.
Finance is about enabling returns for both people with capital and those seeking capital.
MOAR provides decentralized money-market lending enhanced with sophisticated financial tooling.
Q4: "I read that the purpose of MOAR is based on optimizing capital efficiency. How will your platform optimize collateral utilization, return flows, gas efficiency, liquidation protection, among others? What strategies will DeFi develop to achieve this?
John| Moar: I addressed capital efficiency in C-OP in other questions, so I’ll address the other points.
Gas Efficiency — There are so many choices in front of us as the DeFi industry turns to solve network congestion on Ethereum. Whether it is Ethereum’s upgrades, L2, other L1s, and even gas options and protection, MOAR is analyzing these options for integration that optimizes operational efficiency for users.
Liquidation Protection -
In addition to C-OP, we are looking at integrating self-liquidation strategies where a borrower can define the rules to execute a flash-loan and pay down their borrow before incurring a costly liquidation penalty which is typically 10–15%.
There are avenues for setting these protective measures today, but a user has to go to different platforms to set up. MOAR will provide these safeguards directly within its own platform.
Return flows -
Today, DeFi lending is built on floating rates, which is a double-edged sword. By defining fixed term deposits, we can create the DeFi equivalent of the TradFi “yield curve” — a critical component of TradFi.
Now, a borrower or lender can goto the market, and see different rates for different term dates. For example 5% for daily, 7% for 6 month etc.
With a yield curve in place, we can offer DeFi another important TradFi derivative: interest rate swaps. With this tool, borrowers and lenders alike can swap between floating and fixed rates, transforming floating rate instruments into fixed rate instruments, for example.
Q5: "Could you really explain a little more about how MOAR takes advantage of compositing capabilities to create a one-click experience for mass adoption? Will UNION really achieve mass adoption just by implementing MOAR automation?”
John| Moar: Like “vanilla” blockchain in 2018 had much technology but lower accessibility for every-day users, the advanced DeFi features we operate in face a similar situation.
Through a combination of partnering with other projects (vaults, dexes) and building our own, MOAR wants to create the Zapper-esque, one-click experience for our users.
Consumers today expect easy-to-use, simple platforms.
Meeting this expectation will be critical for capturing DeFi mass adoption, much as how Coinbase was able to capture the first wave of mass adoption in the “majors”.
The more people that use MOAR, the more they will be exposed to UNION’s protection products. And by making it simple to utilize, we are confident UNION adoption will increase as well.
Telegram Live AMA Begin:
Q6: Please give us more detail about Why MOAR will donate a huge part of its tokens to the UNION Foundation? Is it really out of gratitude for the support provided? or simply an agreement to become independent a little from UNION? Please explain!
John| Moar: MOAR is a sister project of UNION. And this relationship is more than just lip service, we want both projects to benefit from the efforts of each other.
MOAR’s success, is UNION’s success and vice versa.
Q7: Reading about your project, I found that the spin-off as MOAR will unlock multiple benefits for UNION. What will be the benefits for $UNN holders with this split? Will there be benefits for the holders of the tokens that have been allocated for MOAR?
John| Moar: In addition to using UNION products, MOAR will also support UNN as deposit collateral. We have very interesting incentives for deposting UNN , which we will share at a later date.
There are many many questions about why MOAR is different, what it stands for, etc. I answered these in the twitter segment so please refer to answers there.
Q8: Please kindly tell us about your Partnership with Union Finance and how it will give positive effects for MOAR Finance?
Are there plans for further developments and possible expansion of Utilities, tokenomics and especially to include NFTs?
John| Moar: Addressing the second part of the question: NFTs. Due to its integration with UNION’s C-OP, MOAR is ERC-721 “aware”. This significantly lowers adoption barriers for NFT opportunities as they develop.
Q9: How will your project generate profits / income to sustain your project and what is the revenue model?
How will it benefit your investors and your project?
John| Moar: Like any lending protocol, as our TVL grows, so will the value of the utility token.
Similary, a small portion of lending/borror rates and other advanced transactions will be set aside for Foundation reserves to protect the platform liquidiyt in extreme scenarios.
Q10: Do you only support lending and borrowing or do you also support staking and yield farming? If they are supported do I have to click daily for claiming rewards or are there autoclaim option?
John| Moar: Capital efficiency is dear to MOAR.
We know that yield farming tokens are still inefficiently used for the value they provide.
More information to come as our roadmap develops.
Q11: i cant get much information from your telegram and twitter, where can get more info of MOAR? and this project backed by any VC?
John| Moar: We are moving quickly and will have more information and social channels set up. Stay tuned!
Q12: Reading a little, the following questions arise:
Is the MOAR ecosystem developed with cross-chain technology ?
Will UNN owners have direct involvement in MOAR governance?
What will the MOAR token be?
John| Moar: As UNION will hold a portion of MOAR tokens, UNN voters will in essence have a say on MOAR’s objectives too.
Q13: You point out that “after much consideration, the foundation decided to spin off ULend as a sister project, called MOAR”, but does the Foundation really need MOAR services to continue expanding?
John| Moar: The correct mindset is, UNION’s expansion is massively increased with MOAR as a stand-alone. Both teams, runing with tight objects, mutually increasing value for each other — that’s a partnership.
UNION will continue having more partnerships and expand, but MOAR will be an ampilfier on adoption.
Q14: What are the differences of these two instruments by MOAR : (1) Options and (2) Interest rate swaps? How they also differ to Derivatives?
Why your Telegram official group chat is on mute? Don’t you want to interact with investors?
John| Moar: Without becoming an education on finance:
1) options — help hedge price movements -or- can be used to express a leveraged view on market
2) interest rate swaps — help users control their interest expense, some may want floating, some may want fixed, and some may want to switch based on marrket conditions.
Q15: I’m interested in C-OP. The optimization and guarantee protection will be huge and could easily make another DEFI bull cycle like a governance token in the summer. Will Moar also do over collateralized lending itself? If so, how is it similar to AAVE or Compound?
John| Moar: I think the integration of derivatives with underlying assets will unlock the same amount of value that derivatives did for TradFi.
Rough estimate, derivatives in TradFi are 10x the size of underlying assets. Expect the same for DeFi.
A platform that can lend, borrow with deriviatives in mind, will benefit massively.
Q16: -As a lending Platform, which oracle services does MOAR Finance plan to use, to get trusted and verified data?
-How will MOAR Finance deal with cases of complex flash loans attacks which allows users to borrow more than there collateral value. Do you have a security system in place?
John| Moar: We are certainly sensitive to “junk in / junk out”. We have integrated exploit-resistant oracles and will share more when the time is right.