Money Protocol

Bitcoin had an ugly first week of June 2026 — down from above $72,000 to under $62,000 in a few days, with billions in leveraged longs liquidated and ETF outflows piling on. Markets like that generate a familiar set of horror stories. The interesting thing about borrowers using a code-enforced, self-custodial loan is what they didn't experience. Here are four of them. 1. Their loan didn't get more expensive On a lot of crypto-lending products, a crash and a rising borrowing cost arrive together — variable rates and funding costs spike exactly when you're already stressed. A Money Protocol vault charges a one-time fee when you mint BPD (the dollar-pegged stablecoin) against your Bitcoin, and 0% interest after that. The debt is fixed. A loan opened in May was the same size in June. Whatever else the crash did, it didn't quietly raise the cost of carrying the position. 2. Nobody called them to demand a top-up There was no margin desk on the phone, because there...

Everyone talks about borrowing against Bitcoin. Far fewer people talk about the other side of the trade: earning. Yet a 0%-interest lending protocol can't function without people supplying the things that keep it solvent and liquid — and those people get paid. With Money Protocol's Liquidity Mining Season 1 now live, the earn side is paying its highest rate of the year. Here are the three ways in, from simplest to most involved. First, what you're earning Two things, depending on the path: discounted Bitcoin collateral, and MP, Money Protocol's token. MP captures the protocol's fees — the one-time charges when BPD (the Bitcoin-backed stablecoin) is minted and redeemed — and it's the reward token paid to people who strengthen the system. Notably, MP carries no governance vote: it pays you from the protocol without letting anyone change the protocol's rules. You're earning a claim on usage, not a seat on a committee. Now the three ways. Way 1: Hold BPD...

Every Bitcoin-backed lending system has to answer one hard question: when a loan goes bad, who eats it? In traditional finance the answer is a lender's reserves, an insurance fund, or — in the 2022 CeFi blowups — the customers themselves, who discovered too late that their "safe" yield was funding everyone else's bad bets. Money Protocol answers it with a single, elegant mechanism most people never bother to understand: the stability pool . Once you get how it works, the whole protocol stops looking like magic and starts looking like plumbing. Start with the problem it solves On Money Protocol , you lock RBTC (Bitcoin on Rootstock) into a vault and mint BPD , a dollar-pegged stablecoin, against it at 0% interest. Your vault must stay above a 110% collateral ratio — at least $1.10 of Bitcoin behind every $1 of BPD you've minted. If the BTC price falls and your ratio slips under 110%, your vault is eligible for liquidation. But "liquidation" is just a...

Let's run the scenario nobody wants to think about until it happens. It's a Sunday night. Bitcoin is down 18% since Friday on some headline, and you have an open loan against your stack. Your phone buzzes. What you do in the next ten minutes depends entirely on decisions you made before tonight. So let's make those decisions now, using Money Protocol — a self-custodial, 0%-interest protocol — as the worked example. The setup that survives Three weeks ago you deposited RBTC (Bitcoin on Rootstock) into a smart contract — your vault — and minted BPD, a dollar-pegged stablecoin, against it. You did three things right: You minted at a 200% collateral ratio , not the bare-minimum 110%. Your debt is half your collateral's value. You calculated your liquidation price — the BTC price at which your vault hits the 110% floor and gets closed by the protocol — and it's about 45% below where Bitcoin was on Friday. You kept 20% of the borrowed BPD in ...

Two products can advertise the same thing — "borrow against your Bitcoin, no taxable event" — and be built on opposite foundations. Here's how to tell them apart. Search "borrow against Bitcoin" and you will find a dozen products promising the same outcome: keep your BTC, get cash, skip the capital-gains hit. The marketing converges. The architecture does not. And when something goes wrong, it is the architecture — not the marketing — that decides whether you get your coins back. Category one: custodial loans In a custodial Bitcoin loan, you send your BTC to a company. They hold it. They extend you a loan against it. Nexo, Ledn, and the rest of the CeFi lenders all live here, even the careful ones. The defining trait: while your loan is open, the company controls your collateral. To pay you anything or to offer low rates, a custodial lender generally needs to earn a return on deposits — which means deploying them somewhere. That deployment is the engine of ...