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Overview

The Stablecoin Factory enables anyone to create new Monolith instances. Each instance is a synthetic asset (e.g., a USD‑pegged stablecoin) consisting of a Lender (core instance logic), a Coin (the ERC‑20 synthetic token), and a Vault (an yield-bearing ERC‑4626). The Factory is also the entry-point for the protocol fee operator.

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How to create an instance

  1. Choose your inputs: collateral token, price feed, branding (name/symbol), and risk posture (e.g., collateral factor, minimum debt). Optionally connect a PSM asset/vault for direct convertibility.
  2. Submit a single, permissionless transaction to deploy. The Factory creates three contracts (Lender, Coin, Vault) in a fixed, pre‑computable way.
  3. Announce the addresses and begin distribution, integrations, and liquidity programs as needed. The instance will also be displayed on Monolith UI.

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Architecture

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Per‑instance Components

After deployment, the three following contracts will be created:
  • Lender: Core instance contract and main entry-point for borrowers, liquidators and instance operators.
  • Coin: ERC‑20 synthetic asset token (e.g., stablecoin) minted/redeemed by the Lender for the instance.
  • Vault: Yield-bearing ERC‑4626 tokenized wrapper linked to the Lender and branded with the instance (Staked) name/(s)symbol.

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Deploy Parameters

DeployParams expected by Factory.deploy:
  • name: Instance display name used for Vault/Coin branding.
  • symbol: Instance symbol used for Vault/Coin branding.
  • collateral: ERC‑20 address used as collateral.
  • psmAsset: ERC‑20 asset used by the PSM (Peg Stability Module), if applicable.
  • psmVault: ERC‑4626 vault used by the PSM, if applicable.
  • feed: Price feed implementing a Chainlink‑style interface.
  • collateralFactor: Risk parameter in basis points controlling maximum borrow against collateral.
  • minDebt: Minimum debt per position or market constraint (enforced by Lender).
  • timeUntilImmutability: Relative time window after which select Lender parameters become immutable. Set to 0 for immediate immutability.
  • operator: Instance‑level operator for the Lender (Optional. Set to address(0) for none).
  • manager: Instance‑level manager for the Lender. (Optional. Set to address(0) for none).
  • halfLife: Interest rate half‑life for the exponential rate model. Must be between 12 hours and 30 days.
  • targetFreeDebtRatioStartBps: Lower bound of the target free‑debt ratio band in basis points. Must be ≥500 and ≤ targetFreeDebtRatioEndBps.
  • targetFreeDebtRatioEndBps: Upper bound of the target free‑debt ratio band in basis points. Must be ≤9500.
  • redeemFeeBps: Redemption fee in basis points. Must be ≤300 (3%).

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Integration tips

  • Treat the Lender address as the canonical identifier for an instance; Coin and Vault addresses can be fetched from it.
  • Indexing: watch the Factory’s deployment events or deployments registry to discover new instances.
  • Wallets/exchanges: list the Coin address; staking/earn products can use the Vault for deposit/withdraw flows.
  • Dashboards: read instance configuration (feed, collateral, factors) and status (debt, supply, reserves) from the Lender to present risk and performance metrics.
If you need implementation details and ABI-level specifics, see the Factory contract reference:

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Operator role

  • The Factory includes an operator role which only controls fee-related parameters.
  • Capabilities:
    • Choose or rotate the fee recipient that collects protocol reserves from instances.
    • Set a global protocol fee (bounded by a 10% cap) applied to borrower interest.
    • Define per‑instance fee overrides bounded by the same cap.
    • Perform a two‑step operator handoff to safely transfer control when needed.
  • Limitations:
    • Cannot upgrade contracts, mint tokens, move user funds, or pause instances.
    • Cannot change risk parameters of instances.