Intro
Moneta and the DeFi Franc (DCHF) were launched in September of 2022. With a peak of over $40M the DCHF celebrated some early successes. However, pretty soon it was apparent that a CDP pegged to the Swiss Franc is not as popular as initially thought. Even large EUR based stablecoins like agEUR from Angle protocol have not lived up to their promise due to the lack of interest in stables other than the USD. Besides many people not being interested in owning a Swiss Franc stablecoin, accruing debt in it posed to be an even bigger problem as the Swiss Franc outperformed the Dollar by almost 20% over the past year.
In August of 2023, the Moneta DAO thus decided in a governance vote to shift focus away from the DCHF to a “LST-backed Stablecoin and Yield-Booster”. The new protocol was intended to address the sky-rocketing demand for ETH staking yield and offer real product-market fit. Shortly after the vote was held, the Moneta team with the help of external developers started work on smart contracts, user interface and launch strategy.