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The M0 Ecosystem

Before diving into building, take your time to grasp how M0 works at a high level.

What is M0 and $M?

M0 is a platform for the issuance of application-specific stablecoins. At its core, M0 is a decentralized, immutable protocol managing the supply of $M, a digital dollar building block. $M is fully collateralized by risk-free reserves and offers unique programmability, allowing developers to add custom behavior.

Deeper Dive: M0 Overview, $M Token Technical Specifications

Who are the Key Actors?

  • Minters: These are permissioned institutions authorized to mint new $M tokens or redeem $M for their underlying collateral. They play a crucial role in managing $M's supply and are the primary on/off-ramp for $M to and from fiat.
  • Validators: Independent, trusted entities that verify Minters' collateral frequently, ensuring $M remains fully backed. Their attestations are critical for protocol security.
  • Earners: Addresses approved by M0 Governance whose $M balances (or balances of M0-powered extensions) can access the M0 ecosystem and earn yield.
  • Builders/Developers: Those creating custom stablecoins based on $M (those stablecoins are called M0 Extensions) or integrating $M and into applications.
  • Governance Participants: Holders of Power token (POWER) and Zero token (ZERO) who steer the protocol's evolution.

Deeper Dive: Roles & Mechanisms

How is $M Created and Secured?

$M is minted when Minters deposit eligible collateral. This process is overseen by the MinterGateway contract and relies on verifications from Validators. The collateral types and the rules around minting are determined by M0 Governance.

What About Yield?

Minters pay interest on their minted $M to the M0 protocol. This interest is accumulated by the M0 protocol, and can be distributed to approved Earners.

  • The yield rate is dynamic, determined by Rate Models.
  • The protocol ensures that yield paid out to Earners is sustainably sourced. A portion of the yield generated may also be directed to the protocol's DistributionVault, benefiting Zero token holders.
  • Yield payouts are typically "rebasing" for native $M (balances increase automatically) or "claimable" for extensions.

How is M0 Governed?

M0 uses a robust Two-Token Governance (TTG) system.

Power token (POWER): For operational decisions (e.g., approving Minters/Validators/Earners, setting key parameters like interest rates or collateral ratios).

Zero token (ZERO): For meta-governance (e.g., upgrading the governance system itself).
Decisions are made through proposals and voting, following defined epoch cycles. The Registrar contract stores all protocol configurations.

Deeper Dive: Governance (TTG)