Moola Market is a non-custodial liquidity protocol that is democratizing access to yield and credit. Depositors earn compound interest which is paid for by borrowers who take over-collateralized loans, delegated loans, or flash loans.
Why Moola Market?
The Moola Market protocol has been independently audited since the open source code was migrated from Ethereum to Celo. Moola Market has shared ancestry with Aave v2 codebase which has also been audited here and here. Moola Market contracts are open source so everyone can independently verify the code base as well as build applications that interact with Moola Market.
How do I use Moola Market?
Connect a supported wallet and initiate a deposit transaction. Once you have made a deposit, then you earn yield that compounds each block at a variable rate. You can pay to borrow against the value of your deposited assets. Any interest earned as a depositor offsets some of the interest paid as a borrower.
How much does Moola Market cost to use?
Moola Market does not charge any fees to deposit or withdraw. All transactions on Moola Market including deposit, withdraw, borrow, and repay incur network transaction fees which are used to secure the Celo network. Borrowers incur debt that compounds at either stable or variable interest rates, depending on which interest rate option was selected by the borrower. Flash loans incur a fee of 9bps.
Where does Moola custody my deposited assets?
Your assets are custodied in a smart contract. The smart contract code is public, open source, and can be found here. Your wallet can broadcast a withdraw transaction to redeem your funds from the smart contract anytime or transfer your claim on the deposited assets to other addresses on the Celo network.
What are mTokens?
Moola interest bearing tokens (mTokens) such as mcUSD, mcEUR, mcREAL, and mCELO are transferable cERC20 tokens that represent claims on deposited assets plus accumulated yield. Each mToken is redeemable for exactly one Token (e.g. 1 mcUSD = 1 cUSD). When a wallet deposits Tokens into Moola Market, it receives an equivalent quantity of mTokens in return.
Are there any risks?
As with any new technology, not all risks can be eliminated. Some of the risks related to Moola are smart contract risk (unknown vulnerability with the code) and liquidation risk associated with the collateral liquidation process. Steps taken to minimize these risks as much as possible include opening the code base for the public to review, undergoing code audits, and publishing an open source liquidation bot.