MUSD (Moria USD) is a native, over collateralized stable coin built on Bitcoin Cash (BCH), developed by Riften Labs via the Moria Protocol. Unlike many stable coins backed by fiat currency or centralized reserves, MUSD is fully collateralized with BCH. Here users can lock BCH into Moria smart contracts and mint MUSD in return.
Launched first in a V0 experimental version and later upgraded to Moria v1, MUSD now supports a more sophisticated, market driven borrowing model. In v1, borrowers choose their own interest rate, which determines not just the cost of the loan but also the priority for redemptions , lower rate loans are redeemable first.
To protect the peg and manage risk, Moria uses an oracle system to track MUSD price on DEXes and BCH/USD price. There is also an open redemption mechanism if MUSD drifts from the $1 peg, third parties can repay loans (redeem) to restore balance. Liquidation exists too if collateral falls under a threshold under collateralized positions may be liquidated.
Importantly, Moria recently passed a security audit by Hashlock, bolstering trust in the protocol. The audit confirmed the code is secure, and the architecture respects proof of reserves and decentralization.
The idea of MUSD emerges from Bitcoin Cash’s evolution with the CashTokens upgrade (CHIP-2022-02), BCH gained native token capabilities, enabling DeFi primitives. Riften Labs (the team behind Moria) seized this, designing a stablecoin system that doesn’t rely on external fiat reserves but reuses BCH itself as collateral.
Moria V0 was more experimental , interest free borrowing, a fixed collateral ratio, and simpler mechanics. As the protocol matured, Moria V1 introduced more flexibility, risk markets, and decentralized redemption logic.
MUSD fills a crucial gap in BCH DeFi , before it, BCH holders who needed dollar pegged liquidity had few options that were truly trust minimized.
Read more in my article on read.cash ,
https://read.cash/@Amjad_Ali_Waince/musd-and-its-role-in-the-bitcoin-cash-ecosystem-207e0964
AmjadAli
npub16e…57q84
2026-05-03 18:14:37 UTC
Author Public Key
npub16e78xnqakranpdn4p2w30j3tsg9vxjwaz8mlc2d4py76t0lycm4qp57q84Seen on
wss://relay.damus.ioPublished at
2026-05-03 18:14:37 UTCEvent JSON
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"content": "MUSD (Moria USD) is a native, over collateralized stable coin built on Bitcoin Cash (BCH), developed by Riften Labs via the Moria Protocol. Unlike many stable coins backed by fiat currency or centralized reserves, MUSD is fully collateralized with BCH. Here users can lock BCH into Moria smart contracts and mint MUSD in return.\n\nLaunched first in a V0 experimental version and later upgraded to Moria v1, MUSD now supports a more sophisticated, market driven borrowing model. In v1, borrowers choose their own interest rate, which determines not just the cost of the loan but also the priority for redemptions , lower rate loans are redeemable first.\n\nTo protect the peg and manage risk, Moria uses an oracle system to track MUSD price on DEXes and BCH/USD price. There is also an open redemption mechanism if MUSD drifts from the $1 peg, third parties can repay loans (redeem) to restore balance. Liquidation exists too if collateral falls under a threshold under collateralized positions may be liquidated.\n\nImportantly, Moria recently passed a security audit by Hashlock, bolstering trust in the protocol. The audit confirmed the code is secure, and the architecture respects proof of reserves and decentralization.\n\nThe idea of MUSD emerges from Bitcoin Cash’s evolution with the CashTokens upgrade (CHIP-2022-02), BCH gained native token capabilities, enabling DeFi primitives. Riften Labs (the team behind Moria) seized this, designing a stablecoin system that doesn’t rely on external fiat reserves but reuses BCH itself as collateral.\n\nMoria V0 was more experimental , interest free borrowing, a fixed collateral ratio, and simpler mechanics. As the protocol matured, Moria V1 introduced more flexibility, risk markets, and decentralized redemption logic.\n\nMUSD fills a crucial gap in BCH DeFi , before it, BCH holders who needed dollar pegged liquidity had few options that were truly trust minimized.\n\nRead more in my article on read.cash ,\nhttps://read.cash/@Amjad_Ali_Waince/musd-and-its-role-in-the-bitcoin-cash-ecosystem-207e0964",
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