Mento V3 is here: onchain FX built to scale across chains

As stablecoins mature into a multi-currency category, today’s market structure still makes it hard to trade real-world currencies at scale. Liquidity is often thin, so execution degrades quickly as trade sizes increase. In many markets, supply is still constrained by reserve capacity, limiting how much non-USD liquidity can expand when demand shows up. The result is wider spreads, less predictable quotes, and higher slippage.
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Mento is building the infrastructure of onchain FX that lets you trade real-world currencies onchain with tighter execution and reliable pricing. In 2025, Mento V2 powered 277M transactions. Today, V3 starts rolling out: an upgrade for issuance and trading that makes Mento’s infrastructure scalable and multichain. 
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Mento V3 consists of three core upgrades: 

• Collateral Debt Positions (CDPs): for a new issuance model for non-USD currencies to scale supply with demand instead of being capped by reserve capacity;
• Fixed-Price Market Maker (FPMM) pools: purpose-built for FX trading, offering tighter quotes and supporting larger trades than general-purpose AMMs; 
• Rebalancers: automated agents that keep FPMMs near a 50:50 balance, delivering tighter quotes, improving pricing accuracy, and enabling deeper liquidity with lower slippage for traders.

CDPs are live on Celo today. FPMMs and rebalancers are rolling out next. This is just the start. As V3 rolls out, we’ll share details on the migration progress, details on incentive programs, and multichain deployments beginning with Monad – bringing the same FX pricing rails to other ecosystems.
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How CDP issuance lets non-USD stablecoins scale

Over time, many non-USD currencies will move from reserve-backed issuance to CDP-based issuance. Until now, every non-USD stablecoin (GPBm, JPYm, KESm, etc.) has been  backed directly by Mento’s Reserve, which concentrates FX risk in the Reserve and limits how much supply can grow to available Reserve capacity.

V3 introduces Collateral Debt Positions (CDPs): users can mint non-USD currencies by locking USDm as collateral, allowing supply to scale with demand while keeping the system overcollateralized. USDm itself remains fully Reserve-backed.

This changes how stablecoins can scale. Instead of the Reserve underwriting every unit of non-USD supply, and carrying FX exposure across many currencies at once, CDPs shift issuance toward user-provided collateral with clearer, per-currency risk boundaries, so each market can scale with demand as Mento expands.

CDPs will be anchored on Celo as the control plane for issuance and risk management, while V3’s rollout expands trading and liquidity across additional chains, so the liquidity and markets created by CDP-backed assets can be accessed more broadly. Mento’s CDPs are based on a licensed fork of Liquity v2, with an extended stability pool model designed to support FPMM pools.

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Built with independent review and competitive testing

Mento V3 has been reviewed and tested through:

• Spearbit / Cantina audit competition: 60k USDC+ in prizes, 26 Nov - 18 Dec, 2025
• ChainSecurity: Core V3 and Liquity v2 Audits  

Rollout Timeline & Next Steps 

Live today:

• A new stablecoin naming standard towards multichain FX is complete 
• Migration from reserve-backed to CDP-backed issuance started with GBPm. More currencies will follow.‍

Next steps: 

• FPMM pools for top FX currencies are going live on Monad, targeting deeper liquidity and larger trades; 
• Incentive campaigns for trading FX currencies and providing liquidity;
• Rollout of more FX pairs;
• Expansion of V3-powered pools across chains for deeper markets powered by Wormhole.

More V3 rollout updates coming soon on incentives and multichain deployment. Follow Mento on X and join the Mento community on Discord and Telegram to stay connected. 

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