Moria Protocol Review 2026: MUSD Borrowing Against BCH

Moria Protocol is a DeFi lending protocol on Bitcoin Cash. Users lock BCH as collateral and borrow MUSD, a stablecoin the project describes as over-collateralized and native to the Bitcoin Cash network. The protocol is developed by Riften Labs, according to a November 2025 article about MUSD's role in the Bitcoin Cash ecosystem.

The project's main pitch is transparency and price discipline. Its homepage and search descriptions point to an oracle-based price feed, borrower-set interest rates and proof-of-reserves reporting. Tracking dashboards list the protocol on Bitcoin Cash, classify it as a CDP and show total value locked of about $835,000 as of February 2026, up about 5.5% over the prior 30 days.

The protocol is still small. It was listed on DefiLlama in September 2025, and a January 2025 community post described it as alpha software with a new version expected later. Readers should treat its track record as short.

The project does not publish its fee schedule, liquidation parameters or a licensing or regulatory status in the material reviewed.

Moria is a collateralized debt position (CDP) system. A borrower locks BCH into a smart contract as collateral and mints MUSD against it. The amount that can be borrowed is set by a collateral ratio, so the borrowed value is always lower than the collateral value. This extra margin is what keeps the stablecoin backed if BCH's price falls.

The protocol needs a current BCH price to decide whether a position is safe. The project says it uses the D3lphi oracle for this price feed. If the collateral ratio drops below the required level, the position can be liquidated under rules that the material reviewed does not describe in detail.

The project also describes a floating peg, meaning MUSD's market price is kept near its target through incentives rather than a fixed redemption promise. How strongly that mechanism holds in a stress event is a question that the public material does not answer.

The project does not publish a fee schedule, interest-rate table or liquidation penalty in the material reviewed. Borrowers should look for these terms inside the app before opening a position, since the cost of borrowing depends on the rate they set and the market conditions at the time.

No network or transaction fee figures are stated for the protocol. Bitcoin Cash transaction costs are a separate, usually small, cost that depends on the network.

Smart-contract risk is the main technical concern. Two audits are listed on a tracking dashboard, and a security reviewer's social media post reports a manual review of the code. The summary details available do not include the audit firms' full findings, scope or whether issues were fixed, so readers should read the audit reports directly before depositing.

Custody is through the smart contracts. Users control their collateral through their own wallets, but a bug, oracle failure or governance change could still cause losses. The material does not describe any admin keys, upgrade controls or insurance cover.

Counterparty and regulatory risk is also not described. The project does not publish a licence or statement of regulatory status in the material reviewed. No security incidents are reported in the material reviewed. Anyone using a stablecoin protocol should check whether this activity is legal where they live.

Moria suits experienced Bitcoin Cash holders who want to borrow a stablecoin against BCH and understand collateral ratios and liquidation risk. It is less suitable for people who need published fee schedules, a clear regulatory status or a long operating history before committing funds.