M^0 Ecosystem Spotlight: September Governance Approvals 

In September, M^0 governance approved several significant proposals, marking another month of strategic progress for the network. Notable integrations were confirmed with leading participants including Euler, Re7 Labs and Usual.

Outside of integrations, adjustments were made to network parameters. The mint ratio and minter ratio were recalibrated, optimizing for holdings and monetization use cases being developed. 

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You can always view the currently active governance proposals here.

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Minter Rate set to 4.8% [480 bps]

The M^0 governance has approved a proposal to set the Minter Rate at 4.8% annually. This rate will apply to all Owed M generated by Minters. The adjustment reflects the growing number of $M in circulation, particularly with the rise in Earner applications and the introduction of the Smart $M extension. 

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Mint Ratio set to 97% [9,700 bps]

The M^0 governance has approved a proposal to set the Mint Ratio at 97%, allowing Minters to generate up to 97% of the value of their eligible collateral as $M. This adjustment reduces the over-collateralization on Minter’s portfolios from 5% to 3%, maintaining sufficient protection while easing the burden on Minter balance sheets.

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Euler Foundation becomes an Earner

The Euler Foundation, representing the governance of Euler V2, an advanced modular DeFi lending platform, has officially become an Earner within the M^0 ecosystem. By integrating the yield opportunities offered by $M into their diversification strategy, the Euler Foundation aims to enhance the value of the Euler DAO treasury while contributing to the broader adoption and success of $M across DeFi.

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Re7 Labs becomes an Earner

Re7 Labs, a digital asset investment firm with a strong focus on DeFi risk management, has joined the M^0 ecosystem as an Earner. With a history of providing liquidity in DeFi since 2019, Re7 Labs will now integrate the yield opportunities offered by $M into their on-chain vaults. As part of this strategy, Re7 aims to redirect $M earnings to vault depositors, further supporting the adoption of $M across lending protocols, restaking initiatives, and more.

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Re7 Labs wM Euler Vault becomes an Earner

The Re7 Labs wM Euler Vault has been approved as an Earner within the M^0 ecosystem. As part of Re7’s ongoing strategy to provide early liquidity across DeFi protocols, the vault will enable depositors to supply $M against various collateral assets within the Euler cluster. By integrating the yield opportunities from $M into its vaults, Re7 Labs aims to enhance liquidity while promoting the broader adoption of $M in lending and restaking protocols.

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Re7 becomes Claimant for wM Euler Vault

Re7 Labs has been designated as an override claimant for its wM Euler Vault, allowing the firm to claim the yield attributable to the vault directly from the Wrapped $M Contract. This designation enhances Re7’s ability to manage and allocate yield within its vault, supporting its strategy of integrating $M into DeFi liquidity structures.

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Usual Protocol becomes an Earner

Usual Protocol, a suite of smart contracts that aggregate MMF tokens to issue the stablecoin USD0, has joined the M^0 ecosystem as an Earner. USD0, fully collateralized by short-term Treasury bills and overnight repo agreements, offers a permissionless solution backed by U.S. financial assets. By becoming an approved Earner, Usual Protocol aims to fuel growth into USD0/M liquidity pools and explore new markets, potentially incorporating $M as part of USD0's diversified collateral backing.

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USD0/M Curve liquidity pool becomes an Earner

The USD0/M Curve liquidity pool, created by Usual Protocol, has been approved as an Earner within the M^0 ecosystem. Fully collateralized by short-term Treasury bills and secured by an insurance fund, this pool is a step towards enabling new financial products. The earned yield from $M will be directed to Usual Protocol’s designated wallet, incentivizing liquidity.

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Usual becomes Claimant for USD0/wM Curve Pool

Usual Protocol has been designated as an override claimant for its USD0/wM Curve Pool, enabling the protocol to claim the yield attributable to this pool directly from the Wrapped $M Contract. 

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Pantera becomes an Earner

Pantera Capital, a top tier crypto investment firm managing ~$5.7 billion across various strategies, has joined the M^0 ecosystem as an Earner. By gaining Earner actor rights, Pantera will now earn yield on its $M holdings, further aligning its investment in M^0 with its belief in the protocol’s role in shaping the future of digital money.

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About The M^0 Ecosystem

M^0 is money middleware for the internet age. It is a decentralized, on-chain protocol, as well as a corresponding set of off-chain standards and APIs, that powers a federation of cryptodollar issuers. With M^0, any number of independent institutions can tap on turnkey middleware to become the minter of a fungible cryptodollar asset.