It has been 10 years since the concept of Bitcoin was proposed in 2008. In the context of the global epidemic and inflation, the value of BTC has been recognized by the world, while Ethereum has further improved the ecosystem in the development of decentralized finance, NFT, and meta-universe applications. Blockchain technology and the concept of decentralization have been recognized all over the world. At the same time, because the transparency and immutability of blockchain technology essentially protect people’s wealth, the US dollar economic system is experiencing the impact of the decentralized economic system. People believe more in the security of wealth brought about by the certainty of technology than in the lies of politicians. The endless printing of money by the US government is diluting people’s wealth. This behavior has been shaken by blockchain technology today.
We have seen the explosive growth of various lending and wealth management platforms in the field of decentralized finance (DeFi), and there have been well-known projects such as Safmoon, Pig, FEG, and so on. These projects rely on decentralized infrastructure to design very good economic models:
(1) Excellent decentralized ecosystem. The development of the DeFi project relies on decentralized infrastructure. The current availability of platforms such as Ethereum, Binance Smart Chain, and Matic provides sufficient support for the DeFi project.
(2) The deflationary macroeconomic model. The inflation model will continue to dilute wealth, while the deflation model will continue to increase wealth. The code-guaranteed deflation model provides theoretical support for deflationary DeFi projects.
(3) The wealth-making effect of successful people. People like Musk greatly enhanced the visibility of the project and quickly established a strong community consensus.
However, these projects did not solve the core problem that financial products have no value support. We can intuitively observe the serious problems caused by the lack of value support through the price trend charts of Safmoon, Pig, and FEG (similar to other projects). Once the project has no new investors, the value of the project will not rise. If community members lose confidence in the project and sell tokens, the price will continue to fall, the bubble will burst, and the project will collapse completely. In order to solve the above-mentioned core problem, the Mu project designed an economic model pegged to Bitcoin. This design is like a currency pegged to the US dollar, making it stable while using the DeFi mechanism to form sustainability.
More info please check: https://mucommunity.medium.com/mu-continent-btc-mining-vaults-beta-introduction-6eaa880ebf8e