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Overview

mantraUSD operates as an extension of $M (M0’s base stablecoin). All minting and burning operations leverage M0’s infrastructure, where M-denominated assets are locked on Ethereum and mantraUSD tokens are minted on MANTRA Chain via bridge technologies.

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Minting mantraUSD

Minting creates new mantraUSD tokens through M0’s collateral system. All collateralization is handled by M0, which manages the underlying U.S. Treasury Bills that back mantraUSD.

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How Minting Works

  1. M0 Collateral Deposit: User deposits are transformed into short-dated U.S. Treasury Bills via SPVs managed by M0
  2. M-denominated Asset Lock: M-denominated assets are locked on Ethereum through M0 Core Protocol
  3. Cross-Chain Bridge: Bridge technology (including Wormhole) enables cross-chain transfer
  4. mantraUSD Minting: mantraUSD tokens are minted on MANTRA Chain
  5. Validator Attestation: Validator nodes ensure continuous backing for all circulating supply

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Minting Process

User Deposit → M0 Protocol → U.S. Treasury Bills (SPVs) → M Locked on Ethereum → Bridge → mantraUSD Minted on MANTRA Chain

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Mint Ratio

The M0 Core Protocol maintains a mint ratio (safety factor >1) that ensures over-collateralization:
  • All mantraUSD supply is fully backed by U.S. Treasury collateral
  • The system maintains collateral value greater than total supply
  • Validators continuously monitor and attest to backing
The M0 Core Protocol ensures all tokens minted are always fully backed and redeemable at par. View real-time data on the mantraUSD Dashboard.

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Burning mantraUSD

Burning destroys mantraUSD tokens to redeem the underlying collateral managed by M0.

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How Burning Works

  1. Burn Tokens: Send mantraUSD tokens to be burned on MANTRA Chain
  2. Bridge Unlock: Bridge technology unlocks corresponding M-denominated assets on Ethereum
  3. M0 Redemption: M0 handles redemption of underlying U.S. Treasury collateral
  4. Settlement: Redemptions follow T+2 settlement timelines (consistent with U.S. Treasury market operations)

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Burning Process

mantraUSD Burn on MANTRA Chain → Bridge → M Unlocked on Ethereum → M0 Redemption → Collateral Settlement (T+2)

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Redemption Access

  • Direct Redemptions: Available to authorized Minters meeting KYC/AML and compliance requirements
  • Secondary Markets: Most holders rely on secondary markets for liquidity
  • Settlement Timeline: T+2 settlement consistent with U.S. Treasury market operations
Direct redemptions are generally available only to authorized institutional participants. Most users must rely on secondary markets where liquidity and pricing are not guaranteed.

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M0 Infrastructure

All minting and burning operations rely on M0’s infrastructure:
  • M0 Core Protocol: Ensures all tokens are fully backed and redeemable at par
  • Collateral Management: M0 manages all U.S. Treasury collateral in SPVs
  • Validator Network: Continuous monitoring and attestation of collateral
  • Bridge Technology: Secure cross-chain asset transfers

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Fees and Costs

Minting and burning may involve:
  • M0 Protocol Fees: Fees associated with M0’s minting and redemption operations
  • Bridge Fees: Costs for cross-chain transfers
  • Gas Fees: Network transaction fees (paid in native tokens)
  • Settlement Costs: Associated with T+2 Treasury market settlement
Fee structures are determined by M0 and bridge providers. Check current fee schedules before minting or burning.

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Contract Address

mantraUSD smart contract on MANTRA Chain: Address: 0xd2b95283011E47257917770D28Bb3EE44c849f6F View Contract on Blockscout
Remember that mantraUSD is an extension of $M and relies on M0’s infrastructure. For detailed technical information about minting and burning operations, refer to the M0 documentation.

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