Mozaic Finance (MOZ) Review: The AI-Powered Yield Optimiser

There are so many yield farming opportunities across hundreds of chains, how do you find the best place to stake your tokens to achieve the highest possible returns?

This is where Mozaic Finance comes in, leveraging artificial intelligence (AI) to help you save time and maximise profit.

What is Mozaic Finance (MOZ)?

Mozaic is an omnichain yield optimisation protocol that uses AI to optimise yield and liquidity strategies across multiple chains and protocols.

Thereby, saving you the trouble of having to research and analyse the thousands of yield farms across hundreds of protocols and chains.

It takes the work of having to monitor multiple projects’ performance, compound rewards, or rebalance your portfolio.

All that work is handled automatically by the Mozaic AI called, Archimedes.

Effectively removing the stress and indecisions involved with yield farming, compounding and rebalancing of the portfolio to optimise for the highest APY.

How does Mozaic work

Mozaic’s omnichain vaults are managed by off-chain machine-learning AI models that are trained on a proprietary data-extraction tool built by the team.

This tool aggregates hourly:

1. APY data from a variety of pools, block by block, since the inception of each pool
2. 5 years of token data from over 380 different markets on the 1-minute time frame
3. price, pool, volume, and base volume metrics of the tokens.

Using this data, the AI automatically allocates, adjust, and compound vault assets on an hourly basis for the best APY.

In simple terms, it:

1. scans available pools and yield farms across multiple chains
2. identifies the highest sources of yield from trusted protocols
3. allocates vault assets across the available farms and pools; and
4. compounds the assets.

… all while taking into account —the fees, slippage, pool reward share, error rates, etc, in the decision process.

All these processing is done off-chain and the results are then published or implemented on-chain to ensure the AI decisions cannot be imitated.

For security and transparency, Mozaic will use Zero Knowledge Proofs to show that the off-chain data from its AI models is indeed true and not being manipulated by the team.

Benefits of using Mozaic Finance

This comes with many benefits for you:

1. First, it saves you time and effort, as you don’t have to manually research, compare, monitor, or adjust your yield farming strategies and assets.
2. Second, it maximises profitability, as Archimedes can find the best yield farms and execute transactions faster and more accurately than you ever can.
3. Third, it minimises your risks, as Archimedes can avoid scams, exploits, or impermanent losses by using its advanced algorithms and security measures.
4. Fourth, it increases your flexibility, as Archimedes can access multiple chains and protocols, and switch between them seamlessly and efficiently.

But should you use Mozaic Finance for your yield farming going forward?

Continue reading as we take a deep dive into every aspect of the project and the MOZ token to help you answer that question for yourself.

Mozaic Finance Team

The Mozaic Finance team members are allegedly fully doxxed, and their real names and other relevant details will be included in the project’s doc soon.

For now, you can find and follow them with the following Twitter handles Swaytide (Co-founder), Momento Mori, and Fortesque.

We’ll have to wait for the updated docs to get more details on the team members.

Mozaic Finance (MOZ) Products and Features

1. VAULTS

Mozaic’s main product is its AI-powered vaults, which allow you to deposit your assets and automatically start earning real yield.

Mozaic Hercules Vault

The following are the features of Mozaic’s vaults:

1. Real Yield: Mozaic Finance Vaults use your deposited assets to farm rewards and generate sustainable real yield for you. Rewards are not paid from token inflation.
2. Auto Compounding: Mozaic Finance Vauls automatically harvests and compound rewards, and reallocates assets to new farms when it’s most profitable for you.
3. Community Centric: Mozaic was bootstrapped by the founding team with no VC funding and will be governed by token holders through the Mozaic DAO.
4. Automated Risk Management: Mozaic’s AI-powered vaults help you to automatically manage or avoid several DeFi risks such as yield decay, indecision, transaction errors, inefficiencies, etc.
5. Omnichain: Mozaic allocates your assets across multiple protocols and chains where it could find the best yields.
6. Transparency: You can see the prevailing APY, your total deposited assets, and total assets under management in each vault.

2. xMOZ

You can convert MOZ tokens into xMOZ and unlock exclusive perks or rewards such as platform revenue share, Discord verification, and voting rights in Mozaic DAO.

xMOZ

Note that conversion of MOZ to xMOZ is on a 1:1 ratio but there are penalties for early withdrawal:

1. If you withdraw within 15 days you’ll get a 1:0.5 ratio (a 50% slash).
2. If you withdraw within 30 days you’ll get a 1:0.75 ratio (a 25% slash)
3. If you withdraw after 45 days you’ll get your tokens back on a 1:1 ratio (0% slash).

So, before you convert your MOZ to xMOZ, be sure you’re willing to wait for at least 45 days before you can access your tokens without getting slashed.

PS: 20 million MOZ (2%) has been allocated to xMOZ holders or DAO participants.

3. Exchange

Mozaic Finance enables you to swap several tokens across multiple supported chains through its exchange powered by LI.FI.

Mozaic Finance Exchange

4. Mozaic DAO

Mozaic DAO allows you to vote on proposals using xMOZ on Snapshot.

5. Mozaic Analytics

Find detailed performance analytics of Mozaic Finance’s MOZ and xMOZ tokens on the official DuneDashboard.

Mozaic Dune Analytics Dashboad

Mozaic Funding

Mozaic Finance has received 3 different types of funding so far.

First, Mozaic was funded with $400,000 from Angel Investors in a Pre-Seed round, to kickstart its development.

In return, 8% (80,000,000) of the token supply was allocated to them at a $0.005 token price. So, the Pre-Seed Valuation of MOZ was $5,000,000 FDV.

You will find more details about the MOZ token and distribution in the section that follows below.

Second, the project claims to have received a $200,000 grant from the Google Cloud Web3 startup program.

Finally, Mozaic raised $300,000 in its community raise (IDO) where 60,000,000 tokens were sold at $0.005 in July 2023.

This brings the fully diluted valuation (FDV) of Mozaic to $7.5 million at launch.

Fees: How Does Mozaic Finance Generate Revenue?

Mozaic Vaults takes a 15% performance fee, charged on the profit you earn from the vaults. A portion of which will most likely go to xMOZ holders.

Currently, the performance fee is not being charged on the existing Hercules Vault as a gesture of appreciation to the nascent Mozaic community.

Also, there’s a 1.5% fee on all MOZ buys and sells which is automatically added to the MOZ-ETH protocol-owned liquidity (POL) pool.

Mozaic (MOZ) Token

MOZ is the native token of Mozaic Finance. It is an Omnichain Fungible Token (OFTv2) on the Arbitrum Network with a maximum supply of 1 billion (1,000,000,000).

MOZ allocation and distribution

MOZ allocation and distribution

100% of the MOZ token is allocated as follows:

1. Pre-Seed investors: 80,000,000 (8%)
2. Core Contributors (Team): 180,000,000 (18%)
3. Advisors: 20,000,000 (2%)
4. Community Raise (IDO): 60,000,000 (6%)
5. Initial Liquidity: 40,241,320 (4.02%)
6. Mozaic DAO: 599,758,680 (59.98%)
7. Strategic Airdrop: 20,000,000 (2%)

As you can see from the first 3 allocations, 28% of the token goes to insiders. This is neither excessive nor inadequate. I think it’s fair and reasonable.

Also important to note is that the Mozaic DAO allocation is further distributed as follows to support the Mozaic ecosystem, create sticky TVL and drive protocol revenue.

Mozaic DAO Distribution

1. Incentives: 150,000,000 (15%)
2. Development Fund: 55,000,000 (5.5%)
3. DAO Treasury: 269,756,713 (26.98%)
4. Protocol Owned Liquidity: 75,000,000 (7.5%)
5. Insurance Fund: 50,000,000 (5%)

MOZ Unlocks and Distribution

MOZ token distribution started after the TGE (token generation event), which happened around Sep. 7, 2023.

The DAO and strategic airdrop allocations are fully unlocked at TGE and are not vested. But they did not enter circulation.

The rest of the token allocation is vested and unlocks as follows:

1. Pre-Seed Investors: unlocks after one year (Sep. 7, 2024) and evenly distributed every month over the next 12 months. Fully unlocked and distributed in Sep. 2025.
2. Core Contributors (Team): unlocks after one year (Sep. 7, 2024) and evenly distributed every month over the next 24 months. Fully unlocked and distributed in Sep. 2026.
3. Advisors: unlocks after one year (Sep. 7, 2024) and evenly distributed every month over the next 24 months. Fully unlocked and distributed in Sep. 2026.
4. Community Raise: 20% unlocked and distributed immediately. Then 20% will be released every month (distributed on a weekly basis) over the next 4 months. Fully unlocked and distributed by Jan 7, 2024.

MOZ Use Cases

1. MOZ is primarily used for the governance of the protocol via conversion to xMOZ.
2. xMOZ holders are entitled to a share of the protocol revenue which will be claimable on the Earn page which is said to be currently under development.

Where can I buy MOZ?

You can buy MOZ on Camelot, the leading DEX on Arbitrum.

Keep your eyes on the MOZ Markets CoinGecko page for other exchanges where the token might be tradeable in the future.

Current Limitations of Mozaic Finance (MOZ)

1. Limited Vaults: Mozaic Finance currently have one active Vault called, Hercules, with a maximum cap of $250, 000. But a second Vault called, Theseus, built atop GMX is planned to go live by mid-December 2023. And more vaults will follow as per the roadmap.
2. High risk: The project is still very new and most things are still under development. TVL and liquidity are still very low, leading to high volatility.
3. Inflation: A lot of MOZ will be entering into circulation over the next few months to 2 years. You can expect tangible inflation in the short to medium term that may dilute your investment.

Is MozaiC Finance Secure?

Mozaic has different layers of security to ensure the protocol’s robustness.

First, Mozaic’s AI uses advanced algorithms and security measures to avoid scams, exploits, or impermanent losses. The smart contracts have been audited by Trust Security.

Secondly, Mozaic has employed Upshield to provide real-time alerts on potential attacks, anomalies, and anything that may harm the protocol or put users’ funds at risk.

Third, Mozaic uses Zero-Knowledge Proof (ZKP) to prove that the AI algorithm truly governs the vaults’ decisions and is not manipulated by the team.

Lastly, Mozaic offers bounty rewards to anyone who finds critical bugs or is able to penetrate its systems.

Mozaic Finance Community

Mozaic Finance is committed to its community–centric ethos, ensuring that early or active supporters and long-term investors or users are duly rewarded.

The project aims to be as decentralised as possible to let the community hold the reigns of governance and management of the protocol.

1. Socials

Mozaic has an active and vibrant social presence and it seems to be a very popular yield protocol among the crypto community.

The project’s community is fast-growing with over 17,000 Twitter followers and 7,000 Discord members. These are the two main channels of communication with the team.

2. Partnerships

Mozaic has forged some notable partnerships with prominent Web3 projects such as:

1. Camelot DEX: Mozaic seeded its primary liquidity pool on Camelot DEX at TGE.
2. LayerZero: Mozaic uses the LayerZero messaging layer to access yield farms across multiple chains.
3. ChainStack: Mozaic uses ChainStack’s RPCs to ensure optimal app operations even during peak periods.
4. Wido: Mozaic uses Wido to accept deposits of almost any token or LP position from any chain directly into its vaults.
5. LI.FI: Mozaic uses the LI.FI infrastructure for cross-chain contract calls when moving vault assets from one chain to another.
6. Google Cloud (GC): Mozaic uses the Google Cloud tooling infrastructure to ensure maximum uptime. The project is said to have also received a grant from GC through the Web3 Startup Program.
7. Trust-Security: Mozaic uses Trust Security for its vault audits.

All these and any new partnerships are listed on the website.

Mozaic Finance Roadmap

The existing Mozaic roadmap has been fully checked and is outdated.

An updated roadmap is being worked on by the team which is said to be 80% completed.

My opinion and rating of MOZ

MOZ falls into the AI, Arbitrum ecosystem, LayerZero and Omnichain narratives, all of which are expected to see significant inflows in the coming months.

But at the current price of 0.03840148 and an FDV of $37,806,012, I see only a maximum 10x (1000%) upside for MOX in the next bull run.

This is my bullish case for the token as it will give it an FDV (of about $400 million), similar to what most projects in the same category had in the last bull run.

I will be accumulating and converting to xMOX for long-term HODL for a share of the platform revenue and governance.

Or buying now and flipping for 2x to 5x profit on the way up if I want to play it short-term.

However how you choose to invest in the project or token is entirely up to you based on your goals, expectations, and risk tolerance.

Conclusion