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Deploy your stablecoin at app.monolith.market/deploy. This guide helps you choose the right parameters for your use case.

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Collateral Factor

How much users can borrow against their collateral (in basis points).
ValueRisk ProfileExample Use Case
4000 (40%)ConservativeVolatile assets like memecoins
6000 (60%)ModerateStandard crypto (ETH, BTC)
7500 (75%)AggressiveLiquid assets (stETH, LSTs)
8500 (85%)MaximumVery stable assets with deep liquidity
Higher values = more capital efficient but higher bad debt risk during volatility.

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Minimum Debt

The smallest loan size allowed. Prevents dust positions that are uneconomical to liquidate.
  • Ethereum mainnet: 1,000 Coin recommended (high gas costs)
  • Expensive L2s (Arbitrum, Optimism): 50-100 Coin
  • Cheap L2s (Base, Blast): 10-50 Coin
Set this high enough that liquidating the minimum position is profitable after gas.

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Time Until Immutability

How long you retain the ability to adjust parameters (half-life, target ratios, redemption fee).
DurationWhen to Use
0 (immediate)Full trustlessness, no parameter changes ever
6 monthsQuick bootstrapping, limited tuning window
1-2 yearsStandard launch, time to optimize based on real usage
4 years (max)Maximum flexibility for long-term tuning
After this deadline, all parameters become immutable. The operator retains only fee collection and the ability to adjust local reserve fee.

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Half-Life

Controls how quickly the borrow rate adjusts when the free debt ratio is outside the target band.
  • 12 hours: Very responsive rates, can be volatile
  • 3-7 days: Balanced responsiveness (recommended for most)
  • 30 days: Slow, stable rate changes
Shorter half-life = rates react faster to market conditions but may feel volatile to borrowers.

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Target Free Debt Ratio Band

Defines the “healthy” range for redeemable debt. Rates stay flat inside this band, increase below it, and decrease above it.
  • Narrower bands = more reactive rates, tighter control
  • Wider bands = more stable rates, less frequent adjustments
The optimal band depends on your collateral type, market conditions, and user base. Use the operator role to experiment and adjust based on real usage data.

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Redemption Fee

Fee charged when users redeem Coin for collateral (max 300 bps / 3%).
  • 0 bps: Best redemption UX, no protection for free borrowers
  • 30-50 bps: Light protection, still attractive for arbitrage
  • 100-200 bps: Moderate protection, reduces redemption frequency
  • 300 bps: Maximum protection for free debt borrowers
Higher fees shift the price floor below $1. This can be useful if your stablecoin tends to trade above $1 due to supply constraints.

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Operator and Manager

Set to address(0) for a fully trustless launch with no parameter control. Otherwise:
  • Operator: Full parameter control + fee collection
  • Manager: Parameter tuning only (no fee access)
Use a multisig for the operator address if you want decentralized control.

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Example Configurations

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Conservative ETH-backed USD (Mainnet)

  • Collateral Factor: 6000 (60%)
  • Minimum Debt: 1,000
  • Half-Life: 7 days
  • Redemption Fee: 50 bps
  • Immutability: 1 year

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High-efficiency LST-backed USD (L2)

  • Collateral Factor: 7500 (75%)
  • Minimum Debt: 50
  • Half-Life: 3 days
  • Redemption Fee: 30 bps
  • Immutability: 2 years

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Immutable trustless launch (L2)

  • Collateral Factor: 6000 (60%)
  • Minimum Debt: 100
  • Half-Life: 5 days
  • Redemption Fee: 100 bps
  • Immutability: 0 (immediate)
  • Operator/Manager: address(0)

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After Deployment

Your instance appears on Monolith UI automatically. Next steps:
  • Bootstrap liquidity (DEX pools, PSM if configured)
  • Attract borrowers and stakers
  • Monitor and tune parameters if you retained operator access
See Operate a Stablecoin for ongoing management.