Mozaic: Everything You Need to Know

June 16, 2023

In conclusion

“Tell me about it” - When a seasoned cryptocurrency investor was asked about how difficult it is to invest in an ecosystem that is full of a variety of different sophisticated financial projects. 

We’ve all been there. 

Finding new and worthy crypto assets to invest in is a challenging task. It is certainly not for those who do not have the time and/or the energy to research different projects and select the best-performing ones. Even if they do, they must manage it actively - due to the volatile nature of cryptocurrency. Even if they actively manage their portfolios, the returns they do generate may only sometimes be consistent! 

If only there was one simple solution to all of these problems, then we may see a resurgence of interest in the crypto industry. 

Enter Mozaic 

Mozaic is a novel AI-based yield hunter that offers users the ability to choose from a plethora of different products that help solve the problem of researching and identifying the correct projects to invest in for users. This is made possible by their novel product known as Archimedes. 

Mozaic scans the cryptocurrency market to analyze the best-performing cryptoassets and computes the weightings that a user should have for optimal returns. 

At the heart of Mozaic is Archimedes, their AI engine that is already trained on trading optimizations and single-sided staking. It is currently being trained on borrowing optimizations, lending optimizations, and more. The engine considers price impact, duration of transfers, TVL, fees, and a host of other factors to determine which cryptoassets are worth holding. 

It considers the following factors when making portfolio-rebalancing decisions amongst others: 

  • APY metrics
  • Token prices
  • Fees
  • Slippage
  • Time
  • TVL
  • Error rates

Archimedes also suggests rebalancing assets depending on their performance. This way, it maximizes the returns that both users, as well as the protocol, generates. 

Below are the core features of the Mozaic protocol. 

A thoroughly tested product 

To train Archimedes, Mozaic extracts per-block data on coin prices and other metrics. 

Since each chain has different update frequencies, the block-by-block data - along with - per-minute token price data extraction is crucial to be able to sell native protocol tokens to ensure optimal portfolio performance. 

In initial theoretical testing of Archimedes, it balanced Mozaic’s stablecoin vault (farmed on cBridge) portfolio on:

  • Avalanche for five days 
  • Ethereum for four days
  • Optimism, Polygon, Fantom, and Ethereum (alternatively) for five days

During this time, the engine captured 27% of the yield spikes on AAVE. Mozaic’s omnichain stablecoin vault captured a 19.02% yield daily. 

When practically tested while farming on Stargate staking pools, Mozaic outperformed an active trading strategy of rebalancing portfolio daily by 16.2%. Moreover, when compared with a long-term portfolio where investors buy the assets once and keep them for a couple of months to years, it outperformed by 56%. 

Source

This data has been calculated between 7/1/22 to 2/29/22. 

Omnichain Interoperability 

Mozaic is popular for supporting omnichain interoperability across 21+ blockchains. This is made possible thanks to their integration with LayerZero. This enables the ability to Zap a desired token from any chain directly to the Mozaic vaults, without the need to bridge them over. 

Hercules Vault 

Mozaic’s Hercules is the flagship product that they will soon launch. Upon launch, the vault will accept assets like USDT, USDC, DAI, and FRAX and will support the following chains: Arbitrum, Optimism, Binance Smart Chain, Polygon, Fantom, and Avalanche. 

The vault will have a TVL cap of $1M upon launch and will offer a 15% APY with incentives. 

There will also be a 15% performance fee on this vault (Mozaic has talked about offering the first vault as a fee-free product). The protocol also plans to launch other vaults in the future. Some of their details are given here. 

Users who deposit to the Hercules protocol will get mozStable, which is a ticket representation of their share of the vault. mozStable holders can further deposit their tokens as collateral on Tapioca and borrow other assets against it. 

Since Mozaic is chain-agnostic, users will be able to draw out cross-chain loans! 

$MOZ token

At genesis, about 1B MOZ tokens will be minted and there won’t be anymore minting after. The token will follow the Omnichain Fungible Token (OFTv2) standard. The token distribution will look like this.

Mozaic DAO 

The Mozaic protocol will be governed by a team of members that have been defined as The Senate. These members will be: 

  • Five members from the contributors each having a one-year term
  • Two members from the community each having a 6-month term

The Senate will be responsible for facilitating protocol-related discussions on the forums along with reviewing and voting on the draft proposals. They will also help put up community votes for accepted proposals on Snapshot. For more details on what the voting process will look like, go here

The revenue collected from the protocol will be distributed to the Treasury. To participate in the DAO, Mozaic users can deposit their MOZ tokens to mint xMOZ, which can then be used to voice critical opinions in the DAO. xMOZ tokens are illiquid and nontransferable. They are also mapped 1:1 with MOZ tokens. 

Mozaic NFTs 

Mozaic NFTs are a collection created by the renowned artist Tyler Miles Lockett, and it is aimed to bootstrap initial liquidity for the protocol. The initial mint price will be 0.1 ETH, and the protocol aims to amass $540K worth of value from these NFTs. 

The NFT holders will have access to the Hoplite NFT Syndicate, which will be able to add utility to NFT holders in the future. 

Fees 

The only fee is in the Genesis Vault, which is 15%. Moreover, 100% of the fees generated from the Arrakis Vaults manager will be directed to the MozaicDAO Treasury. 

Audits and Security 

The Mozaic Protocol has partnered with Trust Security to audit its architecture, which is one of the leading blockchain application auditing firms in the industry. To read more about audits, go here. 

Additionally, to combat malicious attacks and aid in the preservation of users’ funds, the protocol will also employ a real-time security management tool known as Forta

MOZ Airdrop 

The Mozaic protocol will airdrop 2% of the overall supply of MOZ tokens (which is 20M MOZ) to target/acquire early DAO participants. 

Pre-launch Campaigns 

Mozaic is hosting a plethora of pre-launch campaigns in which users can participate, win rewards, and rise up the Olympus ladder. These campaigns are being run on Zealy and Galxe. The highest-ranking members on the protocol’s own leaderboard will get a chance to earn exclusive benefits from the protocol. 

To increase ranking on the Leaderboard, users can deposit their MOZ tokens for xMOZ, allocate funds to Mozaic Vaults, and more. 

Intuitive UI 

The protocol offers a very intuitive UI that can be accessed and used by any kind of user, beginner or advanced. With Mozaic, users can easily deposit their assets on the platform and start earning rewards. The protocol will utilize Zero Knowledge Proofs (ZKP) to ensure that all decisions are made by the protocol itself - requiring zero human interference. 

The Pre-Season Campaign is currently being run on Zealy and will end on June 16th, 2023! Catch it before it's over! 

Builders behind Mozaic 

The team at Mozaic consists of some of the smartest people in the industry. Experienced traders like Calum Roberts (founder) who has been handling 400M in weekly trading volume. He has about six years in the cryptocurrency space. To theorize, model and train their AI, Mozaic teamed up with ex-US congressional candidate Greg Tanaka, who ranked in the top 5% of ML forecasting by Kaggle.

Together with their Senior AI Developer, Mike Cui, who has five years of experience in cryptocurrency working with Crosswise they developed their AI, Archimedes. Additionally, their development team have worked for/with Olympus DAO, Binance Smart Chain as well as a number of other established DeFi brands. Overall, they have stellar experience in both Trad-Fi and crypto. Mozaic also has an incredibly smart team of contributors and advisors who aid in the development of the product.

Fundraising 

Mozaic is one of those few innovative projects in DeFi that will do a community fundraising event without any prior VC involvement. This Pre-Product Launch is planned for July 3rd and the community plans to raise $300K at an FDV of $7.5M. In this event, only 4% of the max supply of MOZ will be available to be bought. The team plans to utilize these funds for a host of different activities such as audits, marketing, development, and salaries. 

The second phase of fundraising will be done after the product is launched, and this is expected to happen in mid-to-late July. In this phase, $675K will be up for sale at an FDV of $11.25M and 6% (60M) of the max supply of MOZ will be available for sale. 

After the public sale, a MOZ-ETH pair will be deployed on Arbitrum on Uniswap v3. Mozaic plans to partner with Arrakis PALM, which will enable the former to have its own POL (protocol-owned liquidity) pool. 

Mozaic’s Community 

The protocol’s community is replete with core cryptocurrency and financial enthusiasts. True to the ethos of web3, it has anonymous members from all over the world - especially those who wish to generate hyper-optimized returns without actively managing their portfolios. While Mozaic may be just a few months old, the community has ballooned up to over 10.7K members in almost no time! The community is super active on Discord with people showing their enthusiasm for not just the product but also looking forward to the upcoming product releases. 

Closing Thoughts 

The PMF for Mozaic has already been established, thanks to a massive rise in DeFi users who are looking for a reliable platform to ultimately maximize their returns. This is combined with the fact that there is both a growing advancement and interest in AI. Mozaic is at the heart of the two, offering users the ability to get hyper-optimized returns across a multitude of assets and chains without needing to rely on active portfolio balancing. 

To Mozaic! 💪

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