[USDM]

Mountain Protocol USD

Grade
B+
Date of Rating:
November 20th, 2023
Last Change:
-
SMIDGE Scores
[S] Stability
[M] Management
[I] Implementation
[D] Decentralization
[G] Governance
[E] Externals
[S]
0.85
[M]
0.82
[I]
N/A
[D]
0.10
[G]
0.80
[E]
N/A
USDM Price
Last Update:
19/06/2024 17:00:01
$1.003
Market Cap
$47,110,323
24h Volume
$833,733
Collater­alization
100%
Type of Peg
Fixed - To Fiat
Type of Backing
Fiat
Data provided by Coingecko
SMIDGE Scores
[S] Stability
[M] Management
[I] Implementation
[D] Decentralization
[G] Governance
[E] Externals
[S]
0.85
[M]
0.82
[I]
N/A
[D]
0.10
[G]
0.80
[E]
N/A
Core Team
  • Martín Carrica - CEO

  • Matías Caricato - CTO

Native Chains
  • Ethereum

[S]
[M]
[I]
[D]
[G]
[E]
0.85
0.82
0.00
0.10
0.80
0.00
Mountain Protocol USD
B+
  • USDM is a US dollar-denominated, yield-bearing stablecoin issued by Mountain Protocol. Yield is generated by investing USDM’s reserves in short-term US Treasury instruments. The current yield is around 5%.

  • USDM is made available to non-US users under the US SEC’s Reg S exemption. US persons are prohibited from accessing USDM or Mountain Protocol.

  • USDM is a daily rebasing token that rebases the token balance instead of increasing token price to reflect yields accrued.

  • Mountain Protocol holds a ‘Class M’ Digital Assets Business license issued by the Bermuda Monetary Authority (BMA). It is a limited-period, scale-restricted license offered to projects in a ‘sandbox’ environment that are subject to enhanced supervision and in the process of building effective and scalable compliance programs before being granted a full-fledged Class F license. Bermuda has earned its reputation as a leading offshore financial center and one of the world’s largest reinsurance centers.

  • USDM reserves primarily comprise US Treasury Bills (94%) with an average maturity of 60 days or less, with the balance as cash in transit (owed to USDM reserves) (6%). The reserves are held at reputable US-regulated custodians.

  • USDM reserves are bankruptcy-remote. They are held in trust by regulated custodians in segregated accounts on behalf of, and for the benefit of, USDM holders.

  • We believe USDM is a safe stablecoin that is appropriate for non-US retail users, DAOs & non-US institutions who want a regulated stablecoin that also provides access to US Treasury yields.

  • USDM's rating can be upgraded from B+ to A- upon receiving a Class F license.

Mountain Protocol USD
Stability
Stable
0.85/1
Stable

The Stability factor is evaluated on the following:

1. Reserves Management - Quality, quantity, storage and segregation of reserve assets

2. Market Feedback - Indicators of market's confidence in a stablecoin derived from price and trade data

3. Mechanism - Stabilization methods that protect the stablecoin

Mountain Protocol USD
Management
Low Risk
0.82/1
Low Risk

The Management factor is evaluated on the following:

1. Restrictions - What deterrents exist to prevent key personnel of stablecoin projects from unethical and illegal behavior?

2. Negative Track Record - Have key personnel been involved in scams, frauds or other illegal activities?

Mountain Protocol USD
Implementation
Not Assessed
N/A
Not Assessed

This factor aims to assess risks arising from technical implementations – i.e, smart contract code and oracles. It is currently not assessed, but we plan for it to be evaluated in the future.

Mountain Protocol USD
Decentralization
High Risk
0.10/1
High Risk

The Decentralization factor is evaluated on the following:

1. Platform Censorship Risk

2. Custodian Risk

3. Type of Collateral

4. Diversified voting Power

5. User Censorship Risk

Mountain Protocol USD
Governance
Low Risk
0.80/1
Low Risk

The Governance factor for fiat-backed stablecoins is evaluated on the following:

1. Holder Protection - What rules, statutes or code exist to protect interests of stablecoin holders?

2. Reserves Verification - What checks are done to ensure existence of reserves?

3. Redemptions - Do issuers have transparent and reasonable redemption terms?

Mountain Protocol USD
Externals
Not Assessed
N/A
Not Assessed

This factor seeks to incorporate external feedback mechanisms such as market and social sentiment into our internal ratings. It is currently not assessed, but we plan for it to be evaluated in the future.