Move Dollar (MOD)

Move Dollar (MOD) is a yield-bearing, over-collateralized stablecoin designed specifically for the Aptos ecosystem. The coin is backed by a diverse range of on-chain assets, including liquid staked derivatives, liquidity pool tokens, and real-world assets. This wide array of collateral ensures that MOD remains decentralized, censorship-resistant, and capital-efficient, consistently trading at its intended peg of $1. To maintain this peg, the Thala protocol has instituted mechanisms that require users to mint MOD at a value lower than that of their collateral, ensuring sufficient backing for the stablecoin.

The functionality of Move Dollar within the Thala protocol is enhanced by vault mechanics, whereby users can deposit collateral to mint MOD while adhering to a specific collateralization ratio. The minimum collateralization ratio (MCR) for each asset determines the safety and stability of the vaults, preventing under-collateralization and triggering a systematic liquidation process if necessary. The protocol also incorporates a stability pool designed to absorb debt during liquidations, rewarding liquidity providers with assets from liquidated vaults as a means of maintaining protocol solvency.

Emergency measures such as the Emergency Redemption Mode (ERM) provide a safeguard for MOD holders during extreme market conditions, ensuring that they can redeem their tokens for collateral value. Additionally, the implementation of a peg stability module (PSM) enables efficient conversions between MOD and supported stablecoins, facilitating market stability and helping to uphold the coin’s targeted $1 peg. The combination of these features positions Move Dollar as a robust and versatile stablecoin within the decentralized finance landscape.