V.II Off-Chain Actors and Components

The following components and their associated guidance represent those contemplated for the launch of the protocol. This list is not exhaustive and will likely change over time. While much of the guidance is currently quantitative, there is nothing prohibiting qualitative guidance that is left to the interpretation of the various actors. The guidance will also include legal templates and agreements that will contain terms required to ensure smooth operation of the off-chain components.

Eligible Collateral

A description of portfolio composition which can be placed in Eligible Custody Solutions and be used to generate an on-chain Collateral Value, which is subsequently used in the generation of M.

Guidance at launch: 30-90 day US Government T-bills.

Eligible Custody Solution

A description of entity structures, jurisdictions, contractual agreements, and other details that will suffice for the custody of Eligible Collateral.

Guidance at launch: Orphaned SPV in approved jurisdiction.

Administrative Buffer

An amount of value that a Minter may be compelled to set aside to the Eligible Custody Solution Operator that is not included in the Minter’s Eligible Collateral. This value is intended to be used by the Eligible Custody Solution Operator to facilitate the orderly wind-down of the facility should the Minter become inactive or incapacitated.

Guidance at launch: $100,000.

Eligible Custody Solution Operators

The professional corporate servicing agents (e.g. Trustees) that manage the Eligible Custody Solution.

Guidance at launch: Any governance-approved Operator that is technically and operationally equipped (and licensed, as applicable) to act as manager for an orphaned SPV structure in the approved jurisdictions as well as capable to read and interpret the relevant on-chain information.


The banks that hold deposits on behalf of the Eligible Custody Solution.

Guidance at launch: Any bank in the approved jurisdiction(s).


The custodians that hold Eligible Collateral (excluding bank deposits) on behalf of the Eligible Custody Solution.

Guidance at launch: Any bank in the approved jurisdiction(s) that are operationally equipped to custody the Eligible Collateral.

Minter Wind Down Procedures

The procedures a Minter is expected to follow should they be removed from the Minter list.

Guidance at launch: Minters will be given a 90 day grace period after being removed from the Minter list to fully wind down their operations (a “cooperative wind down”). This means they will have zero remaining Owed M. Should they fail to do so in this timeframe, the remainder of their off-chain value will be forfeit including the Administrative Buffer. The Administrative Buffer, in addition to remaining off-chain value in excess of Owed M, is intended to be used to finance the various off-chain actors that will be involved in the uncooperative wind down.

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