& Stablecoin
Overview
Mortar has developed and will be launching the & stablecoin as an ERC-20 token that will serve as a crucial piece of the ecosystem infrastructure. All users who own the & stablecoin will need to hold relevant VCTs as only KYC/AML compliant users will be permitted to use & stablecoin within the Mortar ecosystem. It will be the only stablecoin permitted to be utilized for payments and investment on Mortar chain. Investors and end users will be able to instantly and automatically deposit other approved stablecoins into a smart contract vault and receive & stablecoin for use in the ecosystem.
Infrastructure
The & stablecoin will be pegged to the US dollar as its purpose is to serve as a dollar equivalent for purchasing real estate and real estate derived assets. As users onboard their capital from digital dollars to stablecoin, the appropriate amount of stablecoin will be minted and issued to keep a 1:1 ratio of stablecoin to cash collateral. In the event of the reverse occurring (users withdrawing their digital dollars) the appropriate amount of stablecoin will be taken out of circulation and burned. This mint/burn functionality will be powered by smart contracts so the peg can be kept automatically and price volatility avoided.
There will be two treasuries where collateral funds are stored to maintain the peg mechanism. First, there will be a bank account where fiat dollars are held and kept available for exchange in the event of a user wishing to redeem their stablecoins in return for fiat dollars. Second, there will be a smart contract vault where ERC-20 tokens such as USDC are stored when users wish to exchange them for & stablecoin. Together, these will embody the cash collateral position for the & stablecoin. Mortar Real Estate Inc. will be responsible for maintaining these positions to ensure the integrity of the peg. The system laid out in this section in no way represents any form of algorithmic solution for the peg mechanism. As is the case with USDC, the key facet of this enterprise will be accounting, which will be performed by a trusted third party in tandem with internal accounting.
Transparency
To make this process as seamless and secure as possible, Mortar Real Estate will partner with a banking institution and an accounting firm to transparently track collateral assets. For now, Mortar Real Estate will be the sole verified issuer of the & stablecoin.