DeFi Money Market Ecosystem

Earn Interest on Digital Assets Backed By Real-World Assets Represented On-Chain.

Mickey Maler

Published in

Coinmonks

6 min readJul 8, 2020

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Overview

Much like the roads need traffic lights and modern states would not work without the rule of law, every important aspect of investments needs security and potential profits.

DeFi Money Market Ecosystem (DMME) introduces a novel, technology-driven way to achieve both security and profits in investments. With the DMG token as a medium of a DDM ecosystem value, DMME makes it possible to earn interest in digital assets backed by real-world assets. This represents a blockchain-secured method of investments, suitable for scenarios when fiat currencies are not a good choice to invest in. DMME combines Ethereum digital assets with the DMM wrapper, which allows earning a 6.25% consistent annual interest.

While real-world assets provide secure and stable investments, combining this with less predictable crypto assets brings potentially higher gains. The currently established ways of investing are rarely significantly profitable, and in most cases, the investor only profits slightly above the inflation rate.

On the other hand, with DMME, crypto-currency interest is secured by interest gained from real-world assets. These are generally greater than 6.25% and therefore make it possible for the investment holders to offer a 6.25% interest. All the current DMM data is also verifiable using a blockchain DMM explorer.

According to DDM WhitePaper and associated studies, the estimated sum of $90.4 trillion is currently held in accounts without any form of interest, which means the money is losing its value. As a hybrid product of real-world assets and the low market cap cryptocurrency, DDM provides an opportunity for this money to be invested in a field that could rapidly grow in the upcoming ten years.

Investors who have already purchased a stake in DMM include Timothy Cook Draper, an American venture capital investor and enterprise founder, as well as other successful investors such as Stephen McKenon, Alon Goren, and Josef Holm.

“Many crypto and traditional investors are looking for stable, secure, passive income. Gregory Keough and the team at the DMM Foundation leverage blockchain to allow users to earn passive income.”
- Tim Draper

The DMME team collaborates with the successful blockchain-based project, Chainlink, to provide reliable and tamper-proof inputs and outputs for the DMM smart contract. Chainlink’s decentralized network of blockchain oracles provides the same security guarantees as the smart contract, which eliminates any single point of failure and maintains the overall value of the DMM smart contracts to assure the system is highly secure, reliable, and trustworthy.

The oracles provide the necessary data, such as data about underlying assets and pricing, but also add an extra layer of security and trust to the ecosystem by writing essential data that details the ecosystem’s health and collateralization.

Instrumental to the functioning of Chainlink, the oracles obtain off-chain data that DMM has at hand and make the data verifiable, trustable, and available for everyone to see.

Other interesting facts

The DMME initial Decentralized exchange offering (IDO) sold out in two days, with the token evaluation range that started at the sale price 36c and was divided into 30 blocks of 83 333 DMG every block price was rising 1.5% ending at 55c.
DMME is already in partnership with Coinbase and Huobi exchanges. In addition, it is possible to get listed on Gemini Centralised exchange in the near future.
The DMG token holders will receive additional rewards if the token becomes profitable

Road Map

The technical roadmap for the DMME focuses on the following major developments.

1. Adding support for more categories of real-world assets, which can further back the system and provide a yield to token holders.

2. Adding more tools that further improve transparency, adding trust as more people join (and stay in) the ecosystem.

3. Integrations and APIs that will allow for existing tools to hook into the DMME, which will grant the project more users & exposure.

4. Improving the treasury management function to become more efficient & transparent as the ecosystem matures.

5. Implementation of the DMM DAO, which can govern the protocol, fund development, add assets, and receive rewards.

The DMG token

DMM Governance (DMG)
Circulating supply: 33 million
Total supply: 250 million
Current price: ~1.3–1.6 dollar / Marketcap: ~25million MC

Conclusion

DMM is a protocol to earn a stable interest in crypto-based deposits. The goal here is to provide interest whose yield is good (many multipliers above typical money market funds or savings accounts in the traditional world) and whose rates don’t change for at least 12–18 months, allowing individuals to project forward with a high degree of certainty of what their financial outlook may be. The biggest challenge they want to solve is offering greater financial inclusion and democratization of access to capital.

The cryptocurrency-base question of 2017 for this project would be: Is this solve some problem? Here I need to say Yes since it provides a product for investments that challenges the current banking saving systems. In 2018, the question would be: “Is this backed up by a good team and investors.” Again, I have to say yes since the team can deliver and the interest of known and successful investors is present. Finally, a partnership with already existing and successfully operating cryptocurrency projects sign this statement. In 2019, the question would be: “How about the adoption of blockchain and crypto?”. This allows users with almost no background with blockchain tech and cryptocurrency to use financial instruments to invest and efficiently generate money income. So yes, for the third time.

About Chainlink

Chainlink’s stated goal is to solve connectivity and interoperability problems that may occur with smart contracts. To do so, they intend to create blockchain “middleware,” or software designed to connect with external software. Chainlink aims to use this technology to make it easier for bank and retail payment systems, market data APIs, backend systems, non-Chainlink blockchains, and other software API to connect to smart contracts and blockchain networks.

Chainlink provides inputs and outputs for smart contracts, including contract oracles, for any blockchain. Necessary for a smart contract to operate, Oracles provide real-world data fed to a smart contract from a source outside the contract.

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