Mobius Finance is a decentralized multi-asset synthetics trading protocol designed on Cardano and Polygon. It is also known for high transaction speeds and low fees.
The CFO of Altcoin Buzz, Shitij Gupta, anchored the Mobius Finance AMA session on our Telegram channel. He was joined by Pedro Torres, the CEO of Mobius Finance. The AMA took place on September 20th, 2021.
Below is a recap of the AMA session with Pedro Torres to understand what the company has been up to recently.
Q – BTC has been oscillating over the past week. Let’s start first by hearing your views on where you see the markets heading.
This is not a piece of financial advice. It’s solely what my experience concludes, and it’s based on that. I want to share my opinion. It all boils down to the time period. If you ask anyone in march 2018, “Where do you see the market heading?” They will say, “Down! Bear market!” But if you ask that same person, “Where do you see the market in three years?” Would they say all-time high?
The important thing to have here is vision and patience. So, with that into account, I believe this year will end up being positive for everyone.
Q – Tell us more about yourself and please give us an introduction about Mobius. How did you come up with the idea?
I’ve been into the whole blockchain space since 2016, mainly doing mining operations. In 2017, the focus got shifted towards IDOs. From 2018 and until today, mainly doing development for new products and quant strategies.
Mobius got born out of the idea that the biggest market in the world is not the stock market (that’s just the most popular one). The biggest market out there is the derivatives market, which is at least 10x bigger in size.
In DeFi, which is mirroring the traditional financial world, which grows bigger every day, derivatives are still “not explored” as they should be.
Mobius Finance thus got created as the first multi-collateral synthetics asset protocol in Polygon. We’re looking to simplify the entire process of entreating any synthetics position, and thanks to Polygon, users can enjoy almost zero-fee transactions and high confirmation times. The IDO is on the 24th and the product is finished. It is also audited by Certik.
Q – Could you please go in a little deep into what exactly a “synthetics asset” is?
A “synthetic asset” (in Mobius Finance, they will be called “mAssets”, i.e., mBTC, mETH) are assets that derive their value from some other asset in the ecosystem.
This other asset can also be “off the blockchain,” meaning that we can create synthetic assets of multiple products such as stocks, commodities, ETFs, etc.
These give users the advantage to find in a single market all types of products, without requiring to have multiple wallets or multiple accounts to get access to them. Also, the entire protocol is decentralized. This overcomes part of the problems with a central party risk.
Q – In terms of risk mitigation, how does Mobius Finance manage the synthetic asset risk? In other words, if I trade mBTC on Mobius and the price of BTC goes down 20%, how does Mobius ensure the safety of my assets?
In terms of the safety of our code, we’re audited by Certik as I’ve mentioned. We’re also going to seek a second audit before deployment; safety is our biggest priority in Mobius Finance.
Secondly, all the protocol is decentralized. This means that Mobius Finance does NOT have any access to any of the users’ funds, as they will be safe in their wallets.
Thirdly, all mAssets will track the price of all assets, so mBTC tracks BTC. We have partnered with Chainlink for this. They will power all of our Oracles.
All positions are over-collateralized, meaning that if anyone enters a long (or short position) by collateralizing ETH, $MATIC, DAI, or $MOT (the Mobius token), they would need to ensure their collateral does not go below the liquidation ratio.
They will be an incentive for users to keep the system liquid by liquidating positions that are below their ratio, and thus, they will receive a discount for performing the liquidation.
Q – Can you explain the role of your tokens – $MOT and moUSD? Also, what will be their use cases?
$MOT = Mobius Finance token. It is a utility and governance token. This means users will be able to use $MOT to enter any long, or short, positions, as well as participate in various rewards incentives, such as liquidity mining. They will also hold the right for voting on the DAO by holding $MOT.
In terms of Mobius USD (moUSD), it will be a new stable currency introduced by Mobius Finance that will serve as the settlement currency of the protocol. It will be pegged at USD1 and will serve to settle all orders within the protocol.
Q – Building this on Polygon takes care of the gas fees issue. Are you planning on building it on other chains (ERC20, BEP20) or just having bridges to MATIC? What derivative product suite do you have in the pipeline, and what does your product roadmap look like?
The token will be mapped on Polygon => ETH, so users will be able to have access to it in two networks.
The protocol will be deployed on Polygon only. For next year, we’re looking for deploying on Cardano.
In those terms, we want to enable four categories:
Which will go live slowly as we ramp up the markets after we launch. In terms of roadmap, the IDO is on the 24th of September on Polylauncher, Flybit, and OccamRazor.
After this, the second audit will be published, and we will announce the protocol going live in Polygon. The first DAO vote will take place in November. By December, we’re looking to integrate new products, such as futures or options.
Q – Tell us more about how the community can participate in the IDO. Which one of the launchpads do you favor for a guaranteed allocation in Mobius?
There will be a limited whitelist. I cannot guarantee everyone will be able to participate, but if you make it to the whitelist, you will be able to do it.
There are three IDO pads:
Q – When will it be on Binance?
I can’t say (yet), but we will be on Gate.io. They will make an announcement soon.
There was a $200 USDT giveaway. The best question from the Telegram platform got $200 USDT. The winner for the best question asked was Tanishq for his technical question.
Q – What is the simple definition of an automatic – debt balance algorithm? How does it help Mobius and its users?
It is complicated to summarize, but it is a way to shift the open interest towards a net-zero position of all long and short positions in the market. You can read more of it in the whitepaper.
The Altcoin Buzz community thanks Pedro Torres, Mobius Finance CEO, for taking part in the AMA session on the 20th of September on our Telegram channel.
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