When people talk about DeFi protocols, many think of yield, leverage, or stablecoin issuance. But there's a fundamental concept that often goes unnoticed, and at Money On Chain, it’s absolutely essential: coverage.
In this article, we’ll explain global coverage, how it’s calculated, and why it’s the central factor keeping DOC stable, protecting BPRO holders, and allowing the protocol to function without automatic liquidations, even in extreme scenarios.
Global coverage is the ratio between the value of the collateral locked in the protocol (in BTC) and the amount of DOC issued. It’s expressed as a proportion, for example, coverage of 4 means there are four times more BTC locked than DOC circulating.
Simple formula:
Global Coverage = Total Value of BPRO (in BTC) / Total Value of DOC Issued (in BTC)
This metric shows how the protocol maintains DOC’s peg to the dollar without relying on a centralized custodian or forced liquidations.
Coverage is what gives real backing to DOC. As long as that coverage remains above certain thresholds, the system stays healthy, and users can:
When coverage drops, the protocol automatically protects itself by restricting certain actions without liquidating positions. That’s key.
One of Money On Chain’s biggest differentiators is its Non-Liquidation approach. Instead of liquidating collateral like other protocols, it implements progressive defense mechanisms:
| Coverage Level | Protocol Status | Allowed Actions |
| >4 | Normal | All operations enabled |
| 2 to 4 | Restricted | Cannot redeem BPRO or mint DOC |
| <2 | Incentives Active | Can mint BPRO at a discount |
| <1.5 | Protected Mode | DOC redemption disabled |
| <1 | Governance Alert | MoC holders may vote for liquidation |
This system is designed to withstand extreme events, like sharp Bitcoin price drops—known as flash crashes. If you're interested in this topic, check out the article What if Bitcoin had a flash crash?.
The system has consistently maintained a global coverage well above 4 in recent years. Even when Bitcoin dropped from a peak of ~$64K to $15K in just a few months, the protocol stayed healthy and never entered Protected Mode.
Coverage adjusts automatically based on user activity and the price of Bitcoin.
This logic aligns incentives:
Users who want DOC must trust that BPRO hodlers will keep their BTC in the protocol. BPRO holders benefit from offering this liquidity as long as the system remains well-covered.
You can track global coverage directly from the Money On Chain dapp. It’s one of the most important indicators for understanding the protocol’s health and making informed decisions.
Global coverage is much more than a technical metric. It’s the cornerstone of the Money On Chain model. Thanks to its robust design and the coordinated participation of its users, the protocol has maintained DOC stability since 2019, without relying on aggressive liquidations or centralized custodians.
The right incentives and a community that understands its importance make this decentralized, antifragile system possible.
Read Deep Dive into Money On Chain
Explore MoC Token Explained to understand how governance strengthens this architecture.
Do you hold DOC or BPRO? Track the coverage and take an active role in a protocol that puts Bitcoin at the center.
