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M0 aspires to revolutionize FinTech by serving as the decentralized backbone of the industry. While FinTech projects excel in front-end services, the back-end often relies on traditional banking systems. M0 aims to redistribute economic benefits fairly by utilizing the M0 construct to create a global dollar-based financial ecosystem.
Minting M0 tokens involves providing collateral to access a minting engine that validates collaterals through proof of reserve. This allows minting a corresponding value in M-form. Redeeming involves purchasing M tokens in the open market, burning them through the protocol, and reclaiming the collateral. The process promotes fungible, freely tradable tokens without governance interference or confiscation.
M0 operates with a loan-to-value approach where mentors can mint a subset of collateral value in M-tokens. The protocol envisions maintaining a subset with a loan-to-value ratio of less than 100%. Governance has the power to dictate protocol parameters, emphasizing a cautious approach to minimize risks compared to traditional financial systems.
M0's initial mentor selection process involves stringent considerations for eligibility. Governance has the authority to whitelist mentor wallet addresses to ensure regulatory compliance, quality management, and collateral security. The approach aims to prevent mismanagement and maintain regulatory adherence, favoring a B2B2C model for stability and transparency.
M0 implements penalty rates and mentor fees for risk management. Penalty rates serve as a deterrent against improper collateral validation or temporary over leverage, influencing mentor behavior for system stability. Mentor fees promote active participation, incentivizing mentors to maintain healthy over-collateralization levels and discourage reckless activity for sustainable growth.
M0 seeks to differentiate between passive and active participation, aiming to reduce parasitic engagement in governance decisions. Incentives are structured to prioritize informed, engaged voting over mere token farming. Through a combination of voting penalties, strategic distribution, and foundation initiatives, M0 aims to foster dedicated, high-quality participation.
M0 envisions the M0 Labs company as a think tank fostering external collaboration and research in stablecoin design. Universities, research houses, and strategic partners are encouraged to contribute to stablecoin research and advancements. The initiative aims to enhance industry knowledge, innovation, and the evolution of stablecoin technology.
In the next five years, M0 envisions a significant value growth to $100 billion, supported by an array of independent and thriving mentors, validators, and collateral managers. M0 plans to evolve into a foundational layer for large institutions to enter the crypto space, expanding the financial market. Additionally, CEO's aspiration includes stepping back from direct governance involvement, empowering smarter parties for protocol growth and industry advancement.
M0 invites individuals with a strategic, forward-thinking mindset to join its ecosystem as the team expands its operations. Positions in various domains such as marketing, communication, engineering, and business development are open. By fostering a culture of high-quality research and communication, M0 aims to attract and collaborate with like-minded professionals for sustainable ecosystem advancement.
In this week's interview we are joined by Luca, CEO & Co-Founder of M^0 Labs to discuss their new crypto dollar product called M. Luca shares insights into the M minting and redemption process, the unique two-token governance system employed by M0, and his long-term vision for the protocol. He also delves into the importance of governance in ensuring the longevity and stability of the M token, and how M0 aims to incentivize active participation in the decision-making process. Luca emphasizes M0's goal of becoming a decentralized bank for DeFi, providing a transparent and distributed collateral pool for a stable crypto dollar. Thanks for tuning in!
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Wormhole is a decentralized interoperability platform powering multi-chain applications and bridges. It provides developers with access to liquidity and users on over 30 leading blockchain networks, enabling use cases in DeFi, data queries, and governance. The platform is trusted by teams like Uniswap and Circle and, to date, the platform has facilitated the transfer of over 35 billion dollars through over 850 million cross-chain messages.
Claim your unique Wormhole NFT at
https://wormhole.com/0xresearch9-1887
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Pear is an innovative pair-trading exchange built on top of SYMMIO. Users can trade trending narratives with one click, from bluechip narratives such as long BTC, short ETH, right through to WIF vs BONK. SYMMIO’s intent-centric architecture enables deep liquidity, sourced off-chain and brought on-chain, and combined with Pear, have democratized access to complex trading strategies typically reserved for institutional traders.
Start trading today at: https://www.pear.garden/
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Marinade is the leading Solana staking service that spreads your stake across 100+ top validators, distributes MEV rewards, and provides automatic downside protection with new Protected Staking Rewards.
Choose to liquid stake for mSOL for use in DeFi, or delegate your stake through Marinade Native, which gives you full custody of your SOL and no smart contract risk. Max performance for you, max performance for Solana.
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Timestamps
(0:00) Introduction
(3:23) M Minting & Redeeming
(13:17) Collateral & Gov Design
(30:43) Wormhole Ad
(31:21) Pear Ad
(31:46) Marinade Ad
(32:25) Avalanche Ad
(33:07) GTM for Onchain Utilization
(47:16) 2 Token Governance System
(1:01:55) 5 Year Vision
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Check out Blockworks Research today! Research, data, governance, tokenomics, and models – now, all in one place
Blockworks Research: https://www.blockworksresearch.com/
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Disclaimer: Nothing said on 0xResearch is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Dan, Sam, and our guests may hold positions in the companies, funds, or projects discussed.
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