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Published on 
26 October, 2023

BPRO is now on Tropykus

We understand that you are interested in exploring the world of decentralized finance (DeFi) and specifically learning more about Money on Chain's BPRO token, its integration into the Tropykus DeFi platform, and how this exciting project works.

So in this article, we will explore how creating a secondary market with BPRO benefits Money on Chain users and analyze the opportunities that arise when incorporating BPRO into its financial strategies.

Finally, we will guide you through a practical example of how you can take advantage of BPRO in both bullish and bearish bitcoin price situations.

Money on Chain BPRO

To begin, it is essential to understand what BPRO is and how it works within the Money on Chain protocol.

BPRO is a token that you obtain by providing collateral on the platform that runs on the Rootstock blockchain, a Bitcoin sidechain. This means that operations on Money on Chain are backed by BTC, the most recognized and trusted digital asset.

At its core, BPRO is a token that emulates Bitcoin price action with slight leverage. It works as an essential piece within the Money on Chain ecosystem, as it allows the creation of a stablecoin: Dollar on Chain (DOC), which directly represents the value of a US dollar and can always be minted or redeemed for the value of Bitcoin in the Money on Chain platform.

To maintain the stability of these tokens, BPRO plays a critical role by functioning as collateral. Users lock their rBTC as collateral by issuing BPRO (this represents protocol coverage) which enables the issuance of DOC based on the amount of BPRO in circulation.

The rBTC used to mint the DOCs in circulation transfers their volatility to BPRO. This innovative solution allows users to take advantage of stable tokens within Rootstock.

Benefits of a Secondary Market with BPRO

The creation of a secondary market for BPRO is an important evolution within the ecosystem. This implies that users can trade BPRO on an open market, adding an additional layer of liquidity and flexibility to the platform. Below we will explain how this benefits Money on Chain and users in general:

  1. Greater Liquidity: The existence of a secondary market allows users to buy and sell BPRO at any time. This significantly improves liquidity and reduces friction when accessing this digital asset. Investors can engage in fast trading and take advantage of market opportunities in real-time.
  2. Facilitates Investment Strategies: Investors can implement more advanced strategies in a secondary market. They can take long (bet that the price will go up) or short (bet that the price will go down) positions, diversify their portfolios, and make informed decisions based on market conditions.
  3. Continuous Innovation and Adoption: The existence of a secondary market can attract more participants to the ecosystem, which in turn can drive continuous innovation and development. As more users get involved, the community can work together to improve the platform and its features.

Opportunities in Tropykus by Integrating BPRO

The integration of BPRO into the Tropykus platform is exciting news for users looking to maximize their opportunities in the market. Tropykus, by incorporating BPRO, adds value to its service offering and creates a more complete and diversified financial environment. Here are some ways Tropykus users can benefit from this integration:

  1. Greater Variety of Options: The addition of BPRO to the Tropykus platform provides users with a greater variety of collateral options. They can use Bitcoin-backed BPRO as collateral to take loans, giving them flexibility to manage their digital assets.
  2. Risk Reduction: By offering BPRO as a collateral option, Tropykus allows users to diversify their risk exposure. They can choose between different types of digital assets to back their loans, which can help mitigate the impact of market volatility.
  3. More DeFi Strategies: The BPRO integration expands the set of tools available to Tropykus users in their investment and asset management strategies. They can use BPRO to obtain additional liquidity, perform leverage trading, and participate in various DeFi activities.
  4. Income Diversification: Tropykus users can earn additional income by lending their BPRO as collateral to other users looking to take out loans. This creates an opportunity to generate passive returns in the DeFi world.

DeFi Strategy with BPRO: Practical Example

To better understand how you can use BPRO in your DeFi strategies, let's consider a practical example in two different scenarios: one bullish and one bearish of the bitcoin price.

Scenario 1: Bull Market

Suppose you believe that the Bitcoin market is about to experience a significant increase in its price. In this case, you can use BPRO as follows:

  1. Lock your rBTC as collateral in Money on Chain by minting BPRO
  2. Deposit BPROs in Tropykus to borrow DOC
  3. With your DOCs, you can buy more BTC or other cryptocurrencies that you expect to benefit from the bull market.

If your prediction is correct and Bitcoin goes up, you can sell your assets and make a profit. In addition, you will have a guarantee tied to that revaluation.

Scenario 2: Bearish Market

Let's say you anticipate a bear market on the horizon. In this case, you can take advantage of BPRO in the following way:

  1. Use your rBTC in Money on Chain to mint BPRO.
  2. Use collateral DOCs to get a loan from BPRO.
  3. You can sell your loaned BPROs obtained at a higher price in the market, wait out the bear market, and make profits while keeping DOC as collateral on the loan.

Conclusion

Money on Chain's BPRO token and its integration into the Tropykus platform represents an exciting step forward in the ecosystem. BPRO, backed by Bitcoin, provides flexibility to users, allowing them to make the most of their digital assets. Creating a secondary market with BPRO benefits Money on Chain by adding liquidity and encouraging innovation.

The addition of BPRO to Tropykus creates exciting opportunities for users by offering a variety of collateral options, reducing risks, expanding DeFi strategies, and diversifying income. Additionally, practical examples illustrate how BPRO can be used in bullish and bearish market situations.

In short, BPRO and its integration into Tropykus open up a world of possibilities, giving you the tools necessary to make informed financial decisions and adapt to changing market conditions. Whether you are an experienced investor or someone just starting out in the world of cryptocurrencies.

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