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FAQ

How do I create a loan?

To create a loan:

  • Visit Moria app and connect a compatible wallet (e.g., Paytaca or Cashonize) via WalletConnect.
  • Select Create Loan, enter the MUSD amount and set your interest rate (e.g., 0.97% to 25% annually).
  • Deposit BCH collateral (minimum 150% collateralization ratio, e.g., 0.123 BCH for 10 MUSD at $404.60/BCH).
  • Approve the transaction to receive the MUSD amount and a loan NFT.

Why was my MUSD loan redeemed?

The loans with the lowest interest rate can be redeemed for the sake of improving peg stability of MUSD on the Moria Protocol.

Redeemers repay the loan (e.g., 10.02 MUSD, including interest) and receive an equivalent BCH collateral amount (1:1 with MUSD). The borrower keeps their MUSD and excess collateral.

Which loans are redeemable and when redemptions can occur is determined by the basis point oracle.

What’s the difference between MUSDv0 and MUSD?

MUSDv0 was the first test run of the protocol with limited duration. MUSD is the release version.

Additional features in the release include:

  • Loan Limits: Increase loan amount from 1000 MUSD to 32 000 MUSD for each loan.
  • Improved peg: Peg stability via interest rates.
  • Collateralization: Liquidation threshold was raised to 120% from 110%.
  • Refinance: The ability to change collateral size, partially repay loan, increase loan based on collateral and change interest rate.

How do I avoid liquidation of my loan?

Maintain a collateralization ratio above 120. If BCH’s price drops, add collateral via the “Add Collateral” option or repay the loan.

Where can I learn more or get support?

Join the Moria Protocol Telegram channel for updates and community help.