# Mento Stablecoin Factory

**URL:** <https://forum.celo.org/t/mento-stablecoin-factory/6867>\
**Category:** Mento\
**Created:** [November 10, 2023, 3:21pm UTC](https://forum.celo.org/t/mento-stablecoin-factory/6867 "2023-11-10T15:21:49Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![olenovyk](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/olenovyk/32/8720_2.png) [@olenovyk](https://forum.celo.org/u/olenovyk)\
**Post date:** [November 10, 2023, 3:21pm UTC](https://forum.celo.org/t/mento-stablecoin-factory/6867/1 "2023-11-10T15:21:49Z")

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Hello,

I have just published [a blogpost](https://mirror.xyz/mentoprotocol.eth/IRWZPWtlCgsIx1KtW3fJliEcJTSPqgyV-TPm59VzbMY) introducing the concept of Mento Stablecoin Factory. It can become a new feature of Mento Platform streamlining the process of launching new decentralized stablecoins. Creating this post to start a discussion and collect community’s feedback about this idea. I will appreciate if you will spend 10 minutes to read an article and let me know what you think about it here.

Thanks and happy weekend everyone!

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**Author:** ![Miltonhenao](https://avatars.discourse-cdn.com/v4/letter/m/ecd19e/32.png) [@Miltonhenao](https://forum.celo.org/u/Miltonhenao)\
**Post date:** [November 10, 2023, 9:06pm UTC](https://forum.celo.org/t/mento-stablecoin-factory/6867/2 "2023-11-10T21:06:08Z")

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All of us complain about the imminent arrival of CBDCs, it would be responsible for us to fully explore every possibility of having a stable currency specific to each country and that at the same time has decentralized characteristics. Only together we can make it possible.

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**Author:** ![LuukDAO](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/luukdao/32/6937_2.png) [@LuukDAO](https://forum.celo.org/u/LuukDAO)\
**Post date:** [November 11, 2023, 10:34am UTC](https://forum.celo.org/t/mento-stablecoin-factory/6867/3 "2023-11-11T10:34:07Z")

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Thanks, @olenovyk for sharing - I’m excited about the focus on enabling swift deployment of use-case-specific stablecoins at scale, and I believe the Mento Stablecoin Factory is the right approach.

With the RedStone oracles and Mento Stablecoin Factory, would you imagine any other RedStone price feeds being used to build on-chain products, such as Grains, Metals, and Stocks?

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**Author:** ![nirvaan](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/nirvaan/32/7242_2.png) [@nirvaan](https://forum.celo.org/u/nirvaan)\
**Post date:** [November 11, 2023, 5:02pm UTC](https://forum.celo.org/t/mento-stablecoin-factory/6867/4 "2023-11-11T17:02:04Z")

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Thanks @olenovyk for sharing this exciting update about the Mento Stablecoin Factory! I think this decentralized approach has the potential to bring about a number of of community-governed currencies with their own distinctive features.

So my main feedback is around configurability (which I imagine is on the roadmap already). For example:

- Configure vault strategy for collateral assets to earn yield from vetted sources (eg. Yearn) potentially redirected towards stability pool. Redstone supports a number of liquid staking tokens that have adoption (eg. [stETH](https://blog.redstone.finance/2023/07/06/case-study-redstone-oracles-propelling-defi-with-lidos-steth-price-feed/), swETH, crvUSD, etc.) which could be a good starting point.
- Configure liquidation policies/pathways for collateral (eg. attempt GrandaMento-style OTC trade, else split order over time with TWAMM in multiple exchanges)
- Ability for stablecoin tokenholders to govern the above parameters at the currency level (in addition to top-level governance from Mento gov tokenholders) using tokens or NFT-based governance.

I also think the Gauge System works well at scale (eg. Curve) but is vulnerable to governance bribing, particularly in the early days. So I think it may be a two-fold process to create a “first line of defense against” then determine “meaningful assets on the platform”.

The first line of defense could simply be automating aggregation/analysis of relevant information about the assets (eg. historical volatility, available liquidity, number of holders, upcoming vesting unlocks that could cause adverse price swings eg. [tokenunlocks](https://token.unlocks.app/)) so that users can make informed decisions. The incentivization to determine the “canonical” stablecoin for a given peg is tricker, and I think the Gauge system could be supplemented by Mento itself incorporating certain assets as a small portion of collateral in the main reserve. In the early days, this would be arguably the strongest signal to the community that an asset is both safe & meaningful.

Hats off to the Mento team for developing this stablecoin factory and explaining it in the blog post! Very much looking forward to future developments here.