MoneroUSD Details
MoneroUSD (USDm) is built on Monero's battle-tested privacy technology. It extends the Monero ecosystem with stablecoin functionality, bringing USD-pegged value to the same privacy-first principles Monero users trust. Your keys, your coins, your privacy.
MoneroUSD vs Monero
| Feature | Monero (XMR) | MoneroUSD (USDm) |
|---|---|---|
| Primary Asset | XMR — volatile cryptocurrency | USDm — USD-pegged stablecoin |
| Purpose | Private digital cash | Private, stable-value digital dollar — a complement to XMR |
| Privacy Tech | Ring signatures, stealth addresses, RingCT | FCMP++ — full-chain membership proofs across the entire UTXO set |
| Collateralization | Market-driven value | Over-collateralized by BTC + XMR reserves (150% minimum ratio enforced on-chain) |
| Block Time | ~2 minutes | ~2 minutes |
| Emission | Tail emission (0.6 XMR/block) | Adaptive emission — scales with network activity. Reward = 25% of average block fees, with a floor of 0.00001 USDm and cap of 0.1 USDm per block. Mining never stops — under reserve stress, rewards drop to the floor to protect backing while maintaining chain security |
| Swaps | XMR ↔ BTC (external tools) | Built-in BTC/XMR ↔ USDm swaps with on-chain burn/mint verification |
| Staking | — | Tiered APR funded by lending interest: 1.5% (flexible) · 3.0% (30d) · 4.5% (90d) · 6.0% (180d) |
| Lending | — | Borrow USDm against BTC (60% LTV) or XMR (55% LTV), liquidation at 65% |
| Consensus | RandomX (CPU mining) | RandomX (CPU mining) — same algorithm, separate network |
| Address Prefix | 4 (mainnet) | M (mainnet) |
| Fork Origin | Original CryptoNote | Haven Protocol → Monero fork with FCMP++ and stablecoin extensions |
How MoneroUSD Maintains the Peg
150% Reserve Backing
BTC and XMR held in protocol reserve wallets serve as the treasury. Total reserve value must exceed 150% of all minted USDm at all times. Every swap entry grows the reserve above this floor.
Overcollateralized Minting
Deposit $150 in BTC or XMR → receive 100 USDm. The 1.5:1 ratio means every USDm is backed by more crypto than its face value. Redemptions pay out at face value minus only the adaptive fee.
Reserve-Scaled Mining
Block rewards scale with reserve health. Under stress, rewards drop to the minimum floor (0.00001 USDm) — mining never stops because chain security depends on continuous block production, but emission becomes negligible to protect reserve backing.
Adaptive Fee Revenue
Swap fees scale with reserve health (0.5% to 3%). Fee revenue split: 80% reserves, 15% yield pool, 5% operations. Staking yield comes from lending interest only — never from reserves.
Adaptive Fee System
Swap fees automatically adjust based on reserve health. During normal operation, fees are competitive with major DEXs. Under stress, higher fees discourage outflows and protect reserve value — a transparent circuit breaker that keeps the protocol solvent.
Adaptive Emission
MoneroUSD uses a usage-proportional emission model. Block rewards scale with actual network activity rather than following a fixed schedule. This prevents reserve dilution while still rewarding miners who secure the network.
How It Works
Each block reward = 25% of the average transaction fee per block (calculated over a rolling window). Floor: 0.00001 USDm. Cap: 0.1 USDm per block. More usage = more fees = proportionally larger rewards.
Reserve Gate
Mining rewards scale down as the reserve ratio drops. Under stress, rewards fall to the floor (0.00001 USDm per block) — enough to keep the chain secure, but negligible enough to protect reserve backing. Mining never stops; only the reward amount changes.
Transaction-Triggered
Blocks are only mined when the mempool contains transactions. No empty blocks are mined by the primary node — a peer node handles keepalive blocks. This minimizes unnecessary emission and aligns miner incentives with actual network usage.
Price Oracle Architecture
Accurate, manipulation-resistant pricing is critical for a stablecoin. MoneroUSD queries 7 independent price sources in parallel and uses the median value — no single oracle can manipulate the price feed.
7-Source Median
CoinGecko, CryptoCompare, Coinbase, Kraken, Binance, OKX, and Bitfinex are queried simultaneously. The median price is used — even if 3 sources are compromised, the price stays accurate.
Outlier Detection
Any source reporting a price more than 10% off the median is flagged and logged. This catches oracle manipulation attempts and degraded data feeds in real time.
Stale-While-Revalidate
If all 7 sources temporarily fail, the last known good price is served for up to 5 minutes. Users never see "price unavailable" due to transient network issues.
Request Deduplication
Concurrent price requests from thousands of users are coalesced into a single external API call. Background pre-fetching refreshes prices every 20 seconds, so the cache is always warm.
FCMP++ Privacy
Monero: Ring Signatures
Each transaction includes a ring of 16 decoy outputs. The anonymity set is limited to the ring size. Statistical analysis can narrow down the real spend over time.
MoneroUSD: FCMP++
Full-Chain Membership Proofs prove a spent output belongs to the entire UTXO set without revealing which one. The anonymity set is the full blockchain — every output is an equally likely candidate. This is the next generation of Monero privacy research.
Swap Protocol
Mint (Crypto → USDm)
Deposit BTC or XMR → protocol verifies the deposit on-chain → USDm minted at deposit × price / 1.5 - fee. The 1.5x overcollateralization grows the reserve with every mint.
Redeem (USDm → Crypto)
Burn USDm on-chain → protocol verifies the burn via daemon confirmation → crypto paid out at burn × (1 - fee) / price. No collateral ratio on redemptions — only the adaptive fee applies.
Burn Verification
Burns are verified at the daemon level using on-chain transaction confirmation. This is more reliable than wallet-RPC methods and works regardless of wallet state. Redundant verification ensures no funds are lost.
Automatic Recovery
If a swap fails due to transient issues (network timeout, temporary resource unavailability), the protocol automatically recovers on service restart. Failed burns are reset and retried — no manual intervention needed.
Lending & Staking
Collateralized Lending
Borrow USDm against BTC (max 60% loan-to-value) or XMR (max 55% LTV). Liquidation triggers at 65% LTV. Collateral is always overcollateralized — the protocol never issues underbacked loans.
Tiered Staking
Lock USDm for higher yields: 1.5% flexible, 3.0% for 30 days, 4.5% for 90 days, 6.0% for 180 days. Yield is paid exclusively from lending interest — staking never dilutes reserves.
Sustainable Yield
Yield only pays out when the loan interest pool has sufficient balance. No promises of unsustainable APY — what you see is what the protocol can actually back. This is DeFi that won't rug you.
Desktop Wallet
Your Keys, Your Machine
The desktop wallet runs a local wallet-RPC process on your machine. Private keys never leave your computer. The wallet connects to the MoneroUSD daemon for blockchain data, but all cryptographic operations happen locally.
Built on Electron
Cross-platform desktop app for macOS (ARM64 and x64). Auto-updates via the built-in OTA system. The wallet bundles the same wallet-RPC binary used by Monero — battle-tested cryptography, not a custom implementation.