# Monolith Project Budget Request **URL:** https://forum.inverse.finance/t/monolith-project-budget-request/541 **Category:** Inverse Finance DAO **Created:** [March 6, 2025, 12:00pm UTC](https://forum.inverse.finance/t/monolith-project-budget-request/541 "2025-03-06T12:00:58Z") **Posts on this page:** 1 **Page:** 1
### Author: ![nour](https://avatars.discourse-cdn.com/v4/letter/n/df788c/32.png) [@nour](https://forum.inverse.finance/u/nour) #### Post date: [March 6, 2025, 12:00pm UTC](https://forum.inverse.finance/t/monolith-project-budget-request/541/1 "2025-03-06T12:00:58Z")
1. Summary We propose the launch of a stablecoin-as-a-service platform, Monolith, enabling permissionless creation of immutable stablecoins using any collateral on any chain. Monolith-deployed stablecoins feature: - Immutable over-collateralized single-collateral design - Autonomous interest rate controller. - Borrower choice between Interest-free or redemption-free borrowing. - Yield-bearing vaults for stablecoin holders. - Fee access for deployers. Benefits to Inverse Finance DAO: - New revenue streams. - Reduced DOLA liquidity costs. - Accelerated cross-chain expansion. - Expanded collateral options for FiRM. - Faster DOLA bad debt repayment. 1. Background - The urgency of immutable stablecoins has never been greater. The stablecoin market is dominated by centralized issuers (~95% of all stablecoin TVL) bringing systemic fragility. - The world awaits a more scalable immutable stablecoin design. While we give a nod of appreciation to the efforts of existing projects, immutable stablecoins today suffer from poor capital efficiency, bad borrower experience, and unreliable peg mechanisms. - All stablecoin projects face formidable barriers to entry. Design, development, testing, audits, marketing, legal, capital raising, regulatory, liquidity, risk, and treasury management. Monolith allows anyone with a quality price feed and collateral asset to easily launch their own stablecoin. - The “long tail” of stablecoin collateral is a large, untapped opportunity. Today stablecoin collateral is dominated by a short list of collateral assets due to risk, liquidity, and other factors. However, if barriers to entry for launching and providing liquidity for stablecoins can be radically reduced, a marketplace with many more stablecoins, each supported by a unique collateral asset, becomes feasible. ![](https://global.discourse-cdn.com/inverse/original/1X/9bae97850a9cc5b759dcd8746599854bf3417acc.png) 1. The Solution: Monolith - Dual Debt System - Interest Rate Controller - Bad Debt Recovery - Pro Rata Redemptions & Redemption Protection - Staking Vault 1. The Monolith Factory - Cross-chain deployment. Once a Monolith Factory is deployed on a chain, Monolith stablecoins can be deployed immediately and permissionlessly. - Collateral Agnostic. Monolith stablecoins may implement any collateral asset with a price feed. For example, M1USD, the first stablecoin to be deployed on Monolith, will utilize Chainlink’s wstETH oracle but other stablecoin deployers may choose any other ERC20 token as collateral with an available price feed contract address. - Pre-audited. Monolith will launch with audits by multiple top auditors and audit contests, reducing security considerations to parameterization and collateral choice… - Fee Switch Monolith stablecoins include a) a local fee switch that Deployers may activate capturing up to 10% of a stablecoin’s interest revenue in addition to all excess interest and b) a global fee switch that Monolith (Inverse Finance) may activate capturing up to 10% of a stablecoin’s interest revenue. Deployers are also free to implement other mechanisms to financially benefit liquidity providers, community members, etc. - UI Exposure Stablecoin instances launched via the factory gain instant exposure to existing Monolith users via a Monolith website that showcases Monolith stablecoins and allows users to access verified on-chain information about them and interact with their contracts without requiring full trust in the stablecoin deployer. - Minimally Configurable. Stablecoins launched on Monolith are nearly identical apart from minimal configuration parameters including: 1. Collateral asset selection (immutable at launch) 2. Collateral factor (immutable at launch, maximum is 90%) 3. Set/change operator role 4. Fee Switch configuration 5. Oracle address (immutable at launch) 6. Interest rate controller configuration 7. Immutability deadline ![](https://global.discourse-cdn.com/inverse/original/1X/2f2e2c0c57e91514bf862be2a5587d4d974cd428.png) 1. Rollout - Monolith Factory’s first deployment is on Ethereum mainnet with the launch of M1USD using wstETH as collateral. M1USD will provide the marketplace with a reference implementation of Monolith. 1. Competitive Environment - Today there is no comparable alternative to Monolith offering permissionless creation of immutable stablecoins as a service. - Stablecoins created via Monolith utilize a design that is expected to compete with existing immutable stablecoin designs including Liquity’s BOLD and LUSD, though without the reliance on proactive “redemption avoidance” for users among other advantages. - Liquidity’s BOLD design leaves a large competitive opening for Monolith: ![Screenshot 2025-03-06 at 3.52.33 PM](https://global.discourse-cdn.com/inverse/original/1X/29708c9d3169f307dc3d293afa8d5c9f43e38090.png) 1. Why Launch Monolith? - Multi-billion Dollar Market Opportunity. The immutable stablecoin opportunity is large and under-served by incumbents and demands an easier to use, and capital efficient design. Use cases for Monolith-created stablecoins include reserve assets for other stablecoins, DAO treasury diversification, immutable store of value, liquidity pairing, payments, as well as simply addressing the concerns of users seeking refuge from creeping centralization. The “long tail” of potential stablecoin collateral that today goes un-used by existing immutable stablecoins itself represents a significant opportunity. - Reduced DOLA Liquidity Costs. Today Inverse spends heavily on liquidity incentives for pairs where only the DOLA portion is incentivized. For example, the USDC portion of DOLA-USDC pairs are incentivized by Inverse Finance for free. With Monolith, this liquidity incentive “leakage” is eliminated directly with instances like M1USD that are launched by Inverse Finance DAO and indirectly with Monolith-compliant stablecoins where Inverse earns a portion of the stablecoin’s interest revenue, and don’t have to fear getting rugged by the issuer. - Protocol-wide Fee Switch. In addition to our own Monolith stablecoin from which Inverse Finance captures 10% of revenue, there is an option to activate a Monolith Fee Switch which collects revenue from all Monolith-created stablecoins. This revenue can be directed towards liquidity, community, and other incentives to supplement the efforts of individual Monolith stablecoin communities or kept as profit. This fee switch, and the decision to use it, will be 100% controlled by Inverse Finance governance. 1. How does Monolith Generate Revenue? - Monolith stablecoins generate fees from interest paid by non-redeemable variable rate borrowers. - Monolith is automatically allocated 10% of the revenue from any Monolith stablecoin… 1. Immutability Deadline and Guarded Launch, - Immutability Deadline 1. Audits & Risk Mitigation - The following audits are planned for Monolith: - The following audit competitions are planned for Monolith: 1. Marketing & Community - Raising Awareness for Monolith 1. Liquidity - Monolith provides a pathway—pending Inverse Finance governance approval—for stablecoins launched on its protocol to potentially access DOLA liquidity and liquidity incentives, including options such as DOLA Feds, treasury DOLA, veNFT-based incentives, and more. Although no support is guaranteed, stablecoin projects on Monolith gain a direct line to the DAO and the possibility of co-incentivization, which can lead to stronger peg stability, lower slippage, accelerated TVL growth, and minimized liquidity costs. At the same time, Inverse Finance benefits from partnering with projects that offer co-incentives, potentially reducing reliance on less favorable liquidity providers like USDC/Circle. 1. Licensing & Legal - Monolith will launch using a Business Source License granted by Monolith’s author, Nour Haridy, that reverts to General Public License after a three year period. - In a separate proposal, Inverse Finance governance will have the opportunity to approve the creation of a legal entity (or entities) that assumes ownership of the Monolith code and enforces the terms of the Business Source License. 1. Timeline - The code for Monolith is complete and ready for audit. - Upon governance approval of this proposal, audit and marketing activities leading up to guarded launch will begin. 1. Budget Request - To minimize the investment in Monolith for Inverse Finance, we present a single budget request leading to the launch of Monolith as it is expected that ongoing marketing and other post-launch Monolith expenses will be paid via Monolith-generated revenues. Monolith 90-Day Launch Expenses | Monolith Launch Expenses | | | --- | --- | | | | | **Risk** | | | Cantina Competition | 72,252 | | yAudit Private Audit | 25,000 | | Chainsecurity Private Audit | 49,500 | | Spearbit Private Audit | 55,300 | | | | | **Growth** | | | Creative Agency | 90,000 | | Major podcast partnership(s) (e.g. Bankless, Blocmates) | 25,000 | | Analysts, content creators | 10,000 | | | | | Miscellaneous | 5,000 | | | | | **Total** | 332,052 | 1. Let’s Do This - Monolith is a historic opportunity to leverage Inverse Finance expertise, community, DOLA Fed, treasury, and other capabilities to catalyze an underserved demand for DeFi stablecoins. - For more information on the Monolith stablecoin reference implementation, M1USD, visit the interim docs page. (coming soon) - For more information on the Monolith Factory, visit the interim docs page. (coming soon) 1. On-chain Actions - Approve 332,052 DOLA to Product Working Group multisig