Most of DeFi's lending infrastructure lives on Ethereum. The stablecoins it produces are overwhelmingly pegged to the U.S. dollar. And while that setup has served early adopters well, it leaves two enormous gaps in the market: blockchains that lack native stablecoin infrastructure entirely, and the hundreds of millions of people around the world whose economies run on euros, not dollars.

Mosaic Protocol exists to close both gaps at once.

Mosaic is a decentralized borrowing protocol. Users deposit REEF tokens as collateral into individual positions called Troves, and borrow MEUR — a Euro-pegged stablecoin — against that collateral. There are no variable interest rates. No governance votes. No human intervention required. The protocol is fully algorithmic, immutable, and designed to run exactly as deployed.

Mosaic launches first on Reef Chain, with plans to expand to other ecosystems that are similarly underserved by existing stablecoin and lending infrastructure.

Mosaic is built on the Liquity v1 codebase, one of the most respected and battle-tested lending protocols in all of DeFi. Since launching on Ethereum in April 2021, Liquity has weathered multiple market crashes, including a 41% intraday ETH price drop, without incident. Its smart contracts are immutable and have been audited extensively. Liquity is among the most forked protocols in the industry, with roughly 45 different versions deployed across various chains — a testament to the soundness of its design.

By forking Liquity v1, Mosaic inherits a proven architecture rather than building from scratch. This means borrowers on Reef Chain benefit from the same mechanisms that have secured billions of dollars on Ethereum, adapted for a new ecosystem and a new currency peg.

Mosaic's mechanics will be familiar to anyone who has used Liquity or a similar CDP-based (Collateralized Debt Position) protocol. For those who haven't, here's a straightforward breakdown.

Borrowing. You deposit REEF into a Trove as collateral and mint MEUR against it. Your Trove must maintain a minimum collateral ratio of 110%, meaning for every €100 of MEUR you borrow, you need at least €110 worth of REEF locked up. Instead of paying ongoing interest, you pay a one-time borrowing fee that ranges from 0.5% to 5%, depending on market conditions. Once that fee is paid, there are no further borrowing costs whether your loan stays open for a week or a year.

Stability Pool. MEUR holders can deposit their stablecoins into the Stability Pool. This pool serves as the first line of defense for liquidations. When an undercollateralized Trove is liquidated, the Stability Pool absorbs the debt, and depositors receive the liquidated REEF collateral in return — typically at a discount. Stability Pool depositors also earn MSIC token rewards over time.

Liquidations. When the value of a borrower's REEF collateral drops and their Trove falls below the 110% minimum collateral ratio, the Trove becomes eligible for liquidation. The Stability Pool absorbs the debt first. If the Stability Pool is depleted, the system redistributes the undercollateralized debt and collateral to other active borrowers. This two-step mechanism keeps the system solvent without requiring manual intervention or governance decisions.

Redemptions. MEUR holders can redeem their stablecoins for the underlying REEF collateral at face value at any time, minus a small redemption fee (minimum 0.5%). This mechanism creates a hard price floor for MEUR by ensuring it is always backed by redeemable collateral. If MEUR ever trades below its peg, arbitrageurs can redeem it for a profit, naturally pushing the price back toward €1.

Recovery Mode. If the total collateral ratio of the entire system falls below 150%, Recovery Mode activates. During Recovery Mode, liquidation conditions are relaxed to protect the system's overall health, and borrowing activity that would further decrease the system's collateral ratio is temporarily blocked.

MSIC is Mosaic's secondary token, with a maximum supply of 100,000,000. It serves two functions within the protocol.

First, MSIC is distributed to Stability Pool depositors as a reward for securing the system. This issuance follows a decaying schedule over time, meaning early participants earn a larger share.

Second, MSIC holders can stake their tokens to earn a portion of the protocol's revenue. Stakers receive both the REEF collected from redemption fees and the MEUR collected from borrowing fees. The more the protocol is used, the more revenue flows to MSIC stakers.

The stablecoin market is overwhelmingly denominated in U.S. dollars. Tether's USDT and Circle's USDC together account for the vast majority of stablecoin market capitalization, and dozens of other USD-pegged tokens compete for the remaining share. Euro-pegged stablecoins, by contrast, represent a fraction of a percent of total stablecoin supply despite the Euro being the second most traded currency in the world.

That imbalance is starting to shift. The Euro stablecoin market has more than doubled over the past year following the implementation of the EU's MiCA regulations, and projections from S&P Global suggest it could grow to hundreds of billions of Euros by the end of the decade. The demand is there. The infrastructure to meet it is not, especially outside of Ethereum.

Mosaic is positioned to serve this demand in ecosystems where it doesn't exist yet. MEUR gives Reef Chain users access to a Euro-denominated stablecoin for the first time, opening up possibilities for on-chain forex trading (pairing MEUR against existing USD stablecoins like USDC), hedging, savings, and payments — all without leaving the chain.

Reef Chain is an EVM-compatible Layer 1 blockchain with low transaction fees and fast finality. Despite having an active community and a liquid native token in REEF, the chain lacks a native, decentralized stablecoin. That's exactly the kind of ecosystem where Mosaic can have the greatest impact, not competing against entrenched protocols on Ethereum, but serving as essential infrastructure where none currently exists.

After establishing Mosaic on Reef Chain, the protocol will expand to other blockchains that face the same gap: active ecosystems with demand for stablecoins but no native supply.

Mosaic Protocol was founded by Derek E. Silva and is being built by a small, focused team of contributors: Salvatore, Luis, bfa, Diego, Dũng, Joe, and Hitesh. The team brings experience across smart contract development, frontend engineering, community building, and DeFi protocol design.

Mosaic Protocol is currently in active development and preparing for its testnet launch on Reef Chain before the end of Q1 2026. The team is focused on completing smart contract deployment, frontend development, and community education ahead of mainnet.

Following the launch on Reef Chain, the roadmap includes expansion to additional blockchains targeting ecosystems that, like Reef Chain today, have active communities and liquid native tokens but lack decentralized stablecoin infrastructure.

Mosaic is building in public and welcomes community participation from day one.

• Website: mosaic.markets

• Documentation: docs.mosaic.markets

• Discord: Join the community

• X (Twitter): @MosaicProtocol

Whether you're a Reef Chain holder looking for new utility, a DeFi user interested in Euro-denominated stablecoins, or a builder exp

loring partnerships, we'd love to hear from you.

Mosaic Protocol — Decentralized borrowing. Euro stability. Built for chains that need it.

Most of DeFi's lending infrastructure lives on Ethereum. The stablecoins it produces are overwhelmingly pegged to the U.S. dollar. And while that setup has served early adopters well, it leaves two enormous gaps in the market: blockchains that lack native stablecoin infrastructure entirely, and the hundreds of millions of people around the world whose economies run on euros, not dollars.

Mosaic Protocol exists to close both gaps at once.

Mosaic is a decentralized borrowing protocol. Users deposit REEF tokens as collateral into individual positions called Troves, and borrow MEUR — a Euro-pegged stablecoin — against that collateral. There are no variable interest rates. No governance votes. No human intervention required. The protocol is fully algorithmic, immutable, and designed to run exactly as deployed.

Mosaic launches first on Reef Chain, with plans to expand to other ecosystems that are similarly underserved by existing stablecoin and lending infrastructure.

Mosaic is built on the Liquity v1 codebase, one of the most respected and battle-tested lending protocols in all of DeFi. Since launching on Ethereum in April 2021, Liquity has weathered multiple market crashes, including a 41% intraday ETH price drop, without incident. Its smart contracts are immutable and have been audited extensively. Liquity is among the most forked protocols in the industry, with roughly 45 different versions deployed across various chains — a testament to the soundness of its design.

By forking Liquity v1, Mosaic inherits a proven architecture rather than building from scratch. This means borrowers on Reef Chain benefit from the same mechanisms that have secured billions of dollars on Ethereum, adapted for a new ecosystem and a new currency peg.

Mosaic's mechanics will be familiar to anyone who has used Liquity or a similar CDP-based (Collateralized Debt Position) protocol. For those who haven't, here's a straightforward breakdown.

Borrowing. You deposit REEF into a Trove as collateral and mint MEUR against it. Your Trove must maintain a minimum collateral ratio of 110%, meaning for every €100 of MEUR you borrow, you need at least €110 worth of REEF locked up. Instead of paying ongoing interest, you pay a one-time borrowing fee that ranges from 0.5% to 5%, depending on market conditions. Once that fee is paid, there are no further borrowing costs whether your loan stays open for a week or a year.

Stability Pool. MEUR holders can deposit their stablecoins into the Stability Pool. This pool serves as the first line of defense for liquidations. When an undercollateralized Trove is liquidated, the Stability Pool absorbs the debt, and depositors receive the liquidated REEF collateral in return — typically at a discount. Stability Pool depositors also earn MSIC token rewards over time.

Liquidations. When the value of a borrower's REEF collateral drops and their Trove falls below the 110% minimum collateral ratio, the Trove becomes eligible for liquidation. The Stability Pool absorbs the debt first. If the Stability Pool is depleted, the system redistributes the undercollateralized debt and collateral to other active borrowers. This two-step mechanism keeps the system solvent without requiring manual intervention or governance decisions.

Redemptions. MEUR holders can redeem their stablecoins for the underlying REEF collateral at face value at any time, minus a small redemption fee (minimum 0.5%). This mechanism creates a hard price floor for MEUR by ensuring it is always backed by redeemable collateral. If MEUR ever trades below its peg, arbitrageurs can redeem it for a profit, naturally pushing the price back toward €1.

Recovery Mode. If the total collateral ratio of the entire system falls below 150%, Recovery Mode activates. During Recovery Mode, liquidation conditions are relaxed to protect the system's overall health, and borrowing activity that would further decrease the system's collateral ratio is temporarily blocked.

MSIC is Mosaic's secondary token, with a maximum supply of 100,000,000. It serves two functions within the protocol.

First, MSIC is distributed to Stability Pool depositors as a reward for securing the system. This issuance follows a decaying schedule over time, meaning early participants earn a larger share.

Second, MSIC holders can stake their tokens to earn a portion of the protocol's revenue. Stakers receive both the REEF collected from redemption fees and the MEUR collected from borrowing fees. The more the protocol is used, the more revenue flows to MSIC stakers.

The stablecoin market is overwhelmingly denominated in U.S. dollars. Tether's USDT and Circle's USDC together account for the vast majority of stablecoin market capitalization, and dozens of other USD-pegged tokens compete for the remaining share. Euro-pegged stablecoins, by contrast, represent a fraction of a percent of total stablecoin supply despite the Euro being the second most traded currency in the world.

That imbalance is starting to shift. The Euro stablecoin market has more than doubled over the past year following the implementation of the EU's MiCA regulations, and projections from S&P Global suggest it could grow to hundreds of billions of Euros by the end of the decade. The demand is there. The infrastructure to meet it is not, especially outside of Ethereum.

Mosaic is positioned to serve this demand in ecosystems where it doesn't exist yet. MEUR gives Reef Chain users access to a Euro-denominated stablecoin for the first time, opening up possibilities for on-chain forex trading (pairing MEUR against existing USD stablecoins like USDC), hedging, savings, and payments — all without leaving the chain.

Reef Chain is an EVM-compatible Layer 1 blockchain with low transaction fees and fast finality. Despite having an active community and a liquid native token in REEF, the chain lacks a native, decentralized stablecoin. That's exactly the kind of ecosystem where Mosaic can have the greatest impact, not competing against entrenched protocols on Ethereum, but serving as essential infrastructure where none currently exists.

After establishing Mosaic on Reef Chain, the protocol will expand to other blockchains that face the same gap: active ecosystems with demand for stablecoins but no native supply.

Mosaic Protocol was founded by Derek E. Silva and is being built by a small, focused team of contributors: Salvatore, Luis, bfa, Diego, Dũng, Joe, and Hitesh. The team brings experience across smart contract development, frontend engineering, community building, and DeFi protocol design.

Mosaic Protocol is currently in active development and preparing for its testnet launch on Reef Chain before the end of Q1 2026. The team is focused on completing smart contract deployment, frontend development, and community education ahead of mainnet.

Following the launch on Reef Chain, the roadmap includes expansion to additional blockchains targeting ecosystems that, like Reef Chain today, have active communities and liquid native tokens but lack decentralized stablecoin infrastructure.

Mosaic is building in public and welcomes community participation from day one.

• Website: mosaic.markets

• Documentation: docs.mosaic.markets

• Discord: Join the community

• X (Twitter): @MosaicProtocol

Whether you're a Reef Chain holder looking for new utility, a DeFi user interested in Euro-denominated stablecoins, or a builder exp

loring partnerships, we'd love to hear from you.

Mosaic Protocol — Decentralized borrowing. Euro stability. Built for chains that need it.