Mobius Finance, as a protocol and ecosystem, has several components and ecosystem participants which make the entire protocol work. The ecosystem members can be grouped into three main categories: Stakers, Traders, and Arbitrageurs.
Users will be able to stake any of the available collateral assets in order to mint moUSD. Stakers provide the liquidity of the protocol as traders on Mobius Finance trade against the collateral. Stakers will be responsible to manage their position and ensure it is at all times above the minimum collateralization ratio. In exchange, stakers are rewarded with $MOT tokens based on their share of the staking pool. Stakers are free to use their moUSD tokens both in-and-out of the Mobius Finance protocol. Allowing them to interact with other DeFi protocols freely. For instance, moUSD can be used to trade, provide liquidity, arbitrage, liquidations, auction pools, etc.
On Mobius Finance, Traders are users who use moUSD to trade against moAssets (Mobius Finance's synthetics assets). Traders can acquire moUSD by minting against their selected collateral type, or by trading on the secondary market. Traders can earn trading rewards on specific trading pairs (Trading pairs selection and rewards amounts are all variables that are open to modification). Traders' $MOT rewards are based on their share of the total volume traded. Traders on Mobius Finance will be able to reach a settlement on their orders with zero slippage and access to moAssets (synthetic assets) which provide users to several asset types including on-chain and off-chain assets.
Arbitrageurs are users who find arbitrage opportunities between the Mobius Finance exchange and other markets. Arbitrageurs acquire moUSD to arbitrage, either by minting or acquiring it in the secondary market. There are numerous arbitrage opportunities and strategies, but as of the most simple yet important to Mobius, there are two main ways to arbitrage.
Arbitrage through moUSD/USDC. If moUSD price goes under its pegged price in the secondary market, users can arbitrage by buying moUSD and trading it for any moAsset at a cheaper price. For example, if the price of moUSD is 0.95 USD in another DeFi market, users can purchase 100 moUSD for 95 USDC and then trade it for 100 USD worth of moETH.
Participating in the auction pool and liquidations. If a user’s collateral requirements drop below the allowed minimum collateralization ratio established(liquidation ratio), their collateral is auctioned at a discount. Arbitrageurs participate in these auctions and earn a profit in exchange for ensuring the liquidity of the protocol.