M^0 has adopted Chainlink infrastructure to deliver net asset value (NAV) data on Ethereum for their “decentralized” stablecoin, $M.
By leveraging Chainlink’s SmartData suite of asset servicing solutions, they are “improving the transparency” of $M.
The core M^0 protocol is a coordination layer for “permissioned institutional actors to generate $M.”
$M is a fungible token that can be generated by “locking Eligible Collateral in a secure offchain facility.”
The protocol enforces a common set of “rules and safety procedures for the management of $M.”
$M is designed to be a stablecoin building block, offering composability as well as “reliability for developers, stablecoin builders, crypto builders and more.”
$M enables the creation of innovative financial products while “maintaining a strong emphasis on safety, transparency, and interoperability.”
By leveraging $M, builders gain access “to the shared liquidity of the M^0 network and an expanding range of use cases.”
Builders also have full control over how “reserve collateral yield is utilized and can integrate custom functionality, starting with $M as their stablecoin block.”
By integrating Chainlink SmartData, integrators of $M can now “access NAV data on-chain with accuracy and security.”
Here’s how Chainlink’s infrastructure enhances $M:
- Secure and “Reliable” Data: Chainlink’s decentralized oracle networks play a pivotal role in ensuring that NAV data is made available on-chain in a timely and accurate manner. Chainlink securely fetches and validates this data through M^0’s standard Minter APIs, which directly access the custodian bank layer, ensuring that the information used for $M is consistent and up-to-date.
- Transparency: One of Chainlink’s key strengths is its ability to provide an immutable and transparent audit trail for NAV data that is tamper-proof and easily verifiable. NAV complements the daily on-chain collateral updates that individual Minters have to do and provides a holistic, aggregate depiction of the ecosystem’s net asset value and $M’s overall financial health.
Greg Di Prisco, Chief Architect & Co-Founder at M^0 said:
“We’re excited to leverage the Chainlink network to bring NAV data on-chain for the M^0 protocol. By adopting Chainlink’s SmartData suite of asset servicing solutions, we can make it significantly easier for integrators to get a real time NAV value for $M.”
As noted in the update, M^0 is money middleware for the digital 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 stablecoin issuers.”
With M^0, any number of institutions can tap on middleware to “become the minter of a fungible stablecoin.”
As covered, Chainlink claims that it is the standard for onchain finance, “verifiable data, and cross-chain interoperability.”
Chainlink is unifying liquidity across markets and has “enabled over $17 trillion in transaction value across the blockchain economy.”
Financial market infrastructures and institutions, lie Swift, Fidelity International, and ANZ Bank, as well as DeFi protocols including Aave, GMX, and Lido, use Chainlink to power “applications for banking, asset management, and other major sectors.”