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  • Introduction
    • Overview
    • FAQ
    • Concepts
      • Liquidity Protocol
      • Supply
      • Borrow
      • Withdraw
      • Liquidations
      • mtTokens
      • Stablecoin
      • Dividends
    • Basic Principles
  • Tokenomics
    • MUTM
      • Allocations
    • Presale Phases
  • Protocol Stability
    • Asset Integration Process
    • Protocol Safeguards and Parameter Framework
    • Market Volatility & Liquidity
    • Price Discovery
    • Address Screening and Wallet Blocking
    • Bug Bounty Program
    • Client Application Security
    • Prevention of Potential Insolvency
    • Model Parameters
    • Mitigating Liquidity Risks for mtTokens
  • Interest Rate Model
    • Borrow Interest Rate and Liquidity Management
    • Stable Interest Rate Model
  • Stablecoin
    • Principle
    • Multi-Asset Collateralization
    • Yield-Generating Collateral
    • Autonomous Minting and Redemption
    • Interest and Discount Rates
    • Issuers
    • Mutuum’s Stablecoin Implementation
    • Borrowing Mutuum’s Stablecoin
    • Repaying and Liquidating Mutuum’s Stablecoin
    • Arbitrage
  • EXTRA
    • L2 Cost Optimization
    • Roadmap
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  1. Stablecoin

Autonomous Minting and Redemption

Stablecoins rely heavily on trust and reliability, and Mutuum’s design considers the need for clear, robust issuance mechanisms. One proposal involves designating certain roles or “issuers” with permission to mint and burn the stablecoin in a trustless manner, governed by smart contracts. Each approved issuer could apply distinctive strategies for generating and managing the stablecoin supply, provided the protocol’s risk parameters are upheld. Any updates or expansions to this issuance framework may be reviewed by the protocol’s internal governance or administrative teams to ensure consistency with security and risk policies.

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Last updated 4 months ago

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