M / wM — M^0
Type: Factsheet — Collateral Asset | Squad: Usual | Status: Draft | Stream: BD Last updated: 2026-02-16
Executive Summary
$M is the base stablecoin of the M^0 protocol. It is minted by permissioned Minters against off-chain eligible collateral (typically US Treasury bills held in special-purpose vehicles) and validated by an independent set of Validators. $M supports two balance modes: non-earning (standard ERC-20) and earning (rebasing) for addresses approved by governance. Earner balances grow continuously via the protocol's rate model, while Minters pay interest; the design guarantees that total earner interest never exceeds 98% of total minter interest.
WrappedM (wM) is a non-rebasing ERC-20 wrapper around $M. It preserves the yield capability of $M while using static balances and claimable yield, making it compatible with DeFi protocols that do not handle rebasing tokens. Within the Usual Protocol ecosystem, M (via the UsualM wrapper at 0x4Cbc25559DbBD1272EC5B64c7b5F48a2405e6470) serves as an active collateral asset for USD0, representing a meaningful share of the diversified collateral base alongside Hashnote USYC, Spiko USTBL, and USDC.
Key Facts
Project
M^0 -- the universal stablecoin platform
Tokens
$M (rebasing for approved earners); wM (non-rebasing wrapper with claimable yield)
Backing
Off-chain eligible collateral (US T-Bills in SPVs) with on-chain attestations by Validators
Collateralization
Governance-set mint ratio enforces over-collateralization
Yield engine
Dual rate model: Minters pay a minter rate; Earners receive an earner rate (capped at 98% of the provably safe rate)
Decimals
6 (both $M and wM on Ethereum)
Multichain
Hub on Ethereum; live on Arbitrum, Optimism, Plume, Solana
Bridging
M Portals (Wormhole NTT or Hyperlane): hub lock/release, spoke mint/burn
Audits
Quantstamp, Three Sigma, Certora, Chainsecurity, OpenZeppelin, Halborn, Ottersec
Usual Protocol role
Active USD0 collateral (wrapped as UsualM)
Investment Mandate & Portfolio
Collateral type: Eligible collateral, typically US Treasury bills held in bankruptcy-remote special-purpose vehicles (SPVs).
Minting mechanism: Permissioned Minters report verified off-chain collateral to the MinterGateway smart contract. Collateral must remain above the governance-set mint ratio, with updates at specified intervals (e.g., 30 hours).
Validation: Independent Validators co-sign collateral updates and retain the ability to freeze Minters or cancel mints.
Yield: Continuous indexing maintains synchronized indexes for Minters (debt) and Earners (rebasing balances). The EarnerRateModel guarantees that total earner interest does not exceed 98% of total minter interest over a defined confidence window.
Subscriptions / Redemptions (Primary)
Institutional (primary)
Direct with Minters via KYB; zero-slippage primary flows in USD or USDC
On-chain (retail / integrators)
Acquire $M or wM on DEX pools and wrap/unwrap as needed
Wrapping
$M can be wrapped into wM at any time; wM can be unwrapped back to $M
Fees
Protocol rates
Minters pay the minter rate; Earners receive the earner rate (capped at 98% of provably safe rate)
Spread
Excess yield + penalties accrue to the Distribution (TTG) Vault
wM integrator fees
Optional fee (bps) on claimed yield
Addresses & Oracles
Ethereum mainnet:
Usual Protocol wrapper:
Full deployments for Arbitrum, Optimism, Plume, Solana: https://docs.m0.org/get-started/resources/addresses/
Governance & Security
Two-Token Governance (TTG):
POWER: Standard and emergency governance (operational parameters, lists, rates).
ZERO: Meta-governance plus claim on Distribution Vault revenues.
Governance operates on fixed 15-day epochs.
Audits: Quantstamp, Three Sigma, Certora, Chainsecurity, OpenZeppelin, Halborn, Ottersec, and others.
Key Risks (Summary)
Collateral and attestation risk: Off-chain collateral depends on Minters and Validators operating correctly and honestly. Collateral verification is not fully on-chain; it relies on attestation and validation infrastructure.
Governance risk: Protocol parameters (mint ratio, rates, approved lists) are governed by TTG. Misconfiguration or governance attacks could affect yields, collateralization ratios, or minter/earner approvals.
Bridging / multichain risk: Hub-and-spoke bridging via M Portals introduces bridge security assumptions and potential cross-chain coordination risks.
Wrapper mechanics risk (wM): wM relies on earnings approvals and rounding rules. The solvency invariant (all wM liabilities fully backed by $M in the wrapper) must hold at all times.
Counterparty risk: Dependence on Minters (institutional counterparties) to maintain collateral levels and update attestations on schedule.
Quick Links
$M Token (overview): https://docs.m0.org/home/technical-documentations/m-token/overview/
WrappedM (overview): https://docs.m0.org/home/technical-documentations/wm-token/overview/
Rates & Yield Models: https://docs.m0.org/home/technical-documentations/rate-models/
Collateral System: https://docs.m0.org/home/technical-documentations/mintergateway/collateral-system/
M Portals (multichain): https://docs.m0.org/home/technical-documentations/m-portal/overview/
Deployments (addresses): https://docs.m0.org/get-started/resources/addresses/
Audits: https://docs.m0.org/get-started/resources/audits/
Disclosures: https://docs.m0.org/get-started/resources/disclosures/
Disclaimer
This factsheet is informational and does not constitute investment, legal, or tax advice. $M and wM are components of the M^0 protocol with eligibility and governance constraints. Always verify addresses on the official Deployments page and consult the Disclosures and primary documentation before interacting.
Last updated