mantraUSD deployment on M0

MANTRACHAIN
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This is the start of the topic to discuss the deployment of mantraUSD via M0

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Hi jayant :slight_smile:

Do you know if mantrausd will be MiCa conform? As you cant use it On cexs in Germany( I Dont know if it’s whole europe) if it is not.

Thank you

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mantraUSD is presented as a US Treasury-backed stablecoin built on M0 and designed to strengthen the MANTRA ecosystem.

However, several key points need clarification:

  1. Yield Destination – mantraUSD reportedly uses M0’s “YieldToOne” model. Where exactly does the yield go, and will the treasury wallet or reports be publicly verifiable on-chain?

  2. Value Capture – If all yield flows to the ecosystem, how does that benefit $MANTRA holders directly? Is there a plan for buybacks, burns, or staking rewards using this revenue?

  3. Collateral Transparency – What custodians hold the underlying U.S. Treasuries, and what are the redemption procedures or fees if users want to redeem mantraUSD?

  4. Freeze Manager Role – Predicate is said to be part of the freeze authority. Under what conditions can wallets be frozen, and how is this governed or audited?

  5. Liquidity & Campaigns – When and where will liquidity incentives via Merkl or Turtle start, and which pools (QuickSwap/Lotus) will launch first?

  6. Governance Alignment – How does the mantraUSD rollout align with MANTRA’s recent 1:4 token split and new 10 B hard-cap proposal? Is there any risk of indirect inflation or dilution through future issuance?

Clarifying these will help investors understand whether mantraUSD truly strengthens MANTRA’s value — or mainly expands the ecosystem without direct token-holder benefit.

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Since Mantra finance has an exchange license, it’d be nice to see a 1:1 redemption similar to Coinbase’s USDC

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When I accepted JP’s invitation to join the team on the ground at our headquarters, so I could be hands-on in directing The Comeback, the very first day I was there we set up a task force to investigate issuing our own stablecoin.

The parameters that were set at that meeting were that we would pursue something that was backed by short-term US Treasury bills. Typically, the definition of US Treasuries is bills mature in less than 1 year; notes mature at terms longer than bills but less than 10 years; and bonds mature at times longer than 10 years.

We wanted something safer than safe to represent the real world “risk-free rate” on MANTRA Chain. While in some circles, the interest rate on the 10-year Treasury note represents the risk-free rate (RFR), in a global financial market that is concerned with multiple countries and industries other than Wall Street finance it’s better to be “safer than safe” and aim to match the coupon rate on the 3-month Treasury bills. This philosophy is in line with modern portfolio theory.

What we are trying to build on MANTRA Chain is a means to compose yield using RWA as collateral. In its simplest form, these strategies should be able to be separated into three basic buckets: Low Risk, Medium Risk, High Risk. But in the long run (ITLR), they could be expanded into Sector or Country Risk buckets.

However these composable yield strategies evolve, the basis for all of them is to have a robust representation of the RFR onchain. And on MANTRA Chain, the RFR will be represented by mantraUSD.

With the YieldToOne design, it means that mantraUSD will not be yield-bearing on its own. After all, it is designed to be an actual “stablecoin,” which to me means that it will always be redeemable for $1.00.

But there are a variety of vaults under research and design with various 3rd parties that you will be able to stake into to earn approximately the RFR, should that be your main objective as a user of MANTRA Chain, with a small portion of the yield designated for $MANTRA buybacks.

There will also be other vaults that you can stake into to pursue higher yield (more risk) strategies.

In all cases, mantraUSD provides the essential baseline yield, or hurdle rate if you will, from which you should evaluate all other composable yield strategies on MANTRA Chain.

Having described why I think mantraUSD is an important part of MANTRA’s RWA ecosystem and why I believe it will achieve PMF, let me spend a paragraph to describe why we chose for the design to be a stablecoin rather than a yieldcoin like Ondo’s USDY.

As you may know, from the beginning of MANTRA’s journey in becoming The RWA L1, we had a partnership with Ondo to bring USDY onto MANTRA, thinking that it would be our onchain RFR that we could compose yield strategies around. However, we found that because it is not a stablecoin - i.e. its price is never intended to be $1.00 - it was very difficult for our users to understand. It was also difficult to provide liquidity for USDY as the redeemable value for USDY increments up from $1 as it receives coupon payments from the Treasuries that back it as collateral. We found that this was very confusing to our users. And to be honest, we understood why.

Thus, when it came to designing our own stablecoin, we made the very deliberate decision that it should always be “just $1.00 flat” and backed by US Treasuries. However, we do want the yield from the collateral that backs mantraUSD to be used to improve the ecosystem. In this regard, we have identified three important use cases: Builders, Users, and Buybacks.

For Builders, attracting a supply of mantraUSD to your protocol’s smart contracts means that the foundation will provide a yieldback to your platform.

For Users, you can stake into strategies of different risk profiles and you’ll know that, in most case, the RFR is your yield floor.

For the ecosystem as a whole, know that some portion of every coupon that the foundation receives from the collateral that backs mantraUSD will be spent directly on $MANTRA buybacks.

This information and more will all be tracked on a dedicated mantraUSD website and via the mantraUSD X Account.

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This post shows exceptional clarity in connecting traditional finance theory with DeFi application. Anchoring mantraUSD to short-term U.S. Treasuries and maintaining a strict one-dollar peg reflects both risk management discipline and user-centric design. It transforms RFR from a theoretical benchmark into an on-chain primitive and ties yield distribution directly to ecosystem value through buybacks and builder incentives. This is a thoughtful, credible blueprint for sustainable RWA integration in decentralized finance.

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first day you had your sights on a stable coin. mega foresight. mega bullish.

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detailed consideration and a simple conclusion, mantraUSD stays at 1 Dollar, fully backed :clap:

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Thank you for your insights.

I think this is a great design of Mantrausd. And very important one, to clearly set the foundation as a true RFR USD pegged stablecoin.

I think the stablecoin cryptospace is overusing the stablecoin denomination, naming USD coins that are far from stable and far from pure risk free rate yield. This adds confusion and fear of contagion, as we saw what happened recently on unfortunate Balancer exploit event.

In this sense MantraUSD design is in the right direction, it is crucial to be clear and transparent on the risks and usage the collateral.

An stablecoin should be stable by definition.

Let the holders adjust their risk/return profile by joining other platform that offer different risks adjusted products without adding risk on the base layer.

Mantra ecosystem is just getting better and better! LFG!:flexed_biceps:

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