Security Operators
The Backbone of USDm’s Integrity, Yield, and Governance
1. Why Most Stablecoins Fail
Stablecoins backed by volatile, recently launched assets often the native tokens of new blockchains consistently struggle to maintain longterm price stability. These systems typically suffer from:
Severe price fluctuations during periods of market stress A lack of inherited, external security guarantees Unsustainable reliance on emissions, cyclical fees, or memecoinstyle yield games
While they may generate shortterm returns through speculative instruments or inflationary rewards, these mechanisms often create unstable feedback loops that compromise the peg and trap users in highrisk positions.
2. USDm’s Structural Breakthrough
USDm avoids these pitfalls through a securityfirst, yieldaligned architecture rooted in Ethereum and governed by decentralized Security Operators.
At its core, USDm introduces a novel foundation:
A decentralized layer of Security Operators that enforces minting policy, verifies private transfers, governs proof throughput, and earns real protocol revenue all while anchoring trust in Ethereumbacked collateral.
3. What You Get as an Operator
Once active, your vault becomes an essential part of the USDm economy. Operators:
Earn up to 50% of private transaction fees, depending on ranking and vault performance Receive 20% of all yield generated by wUSDm, USDm’s wrapped, yield-bearing version Gain programmable, limited visibility into encrypted transfers, via secure, quorum-based threshold decryption Set policy for the protocol, including proof throughput, gas checks, and vault-level compliance thresholds across chains like Monad and MegaETH
Your vault doesn’t just observe it enforces. And it earns.
4. Earn Real Fees from Private Transfers
At 100,000 daily private transfers, a top-ranked vault could generate substantial recurring USD income, without inflation or dilution.
For example:
A top-performing vault could earn approximately 5% of all transfer fees per month.
Every private transfer on Mynt incurs a 0.5% – 1% fee paid by users for privacy.
These fees are routed directly to Security Operators. This is not a reward token. It’s USD-denominated, protocol-native revenue. Revenue is ranked and distributed based on vault positions.
At 100,000 daily private transfers, a topranked vault could generate substantial recurring USD income without inflation or dilution.
5. Operator License: Infrastructure as Ownership
To open a Security Operation account, users submit a 1 ETH perpetual bond that activates their infrastructure role in the USDm network.
It grants:
Permanent access to protocol-level roles.
Eligibility for revenue from real user flows.
A non-revocable seat in the enforcement and governance layer.
Think of it as your long-term operator license; a gateway to owning and earning from the rails of the new stablecoin economy. It activates infrastructure-level rights inside the USDm network.
The 1 ETH fee is used to fund and maintain:
Attester infrastructure for decrypting private transaction metadata under quorum.
ZK proof verification nodes across supported chains
Ratelimiting, integrity, and policy enforcement logic
Secure participation in operator governance and yield routing
This payment buys you a seat at the protocol’s core, not just as a verifier, but as a policy enforcer and yield recipient.
6. Collateralization and Security Thresholds
USDm enforces a protocol-level requirement:
20% of the total USDm supply must be backed by ETH or USDC delegated to Security Operators on Ethereum mainnet.
This is a hard threshold. If delegation coverage drops below 20%, the protocol automatically halts all new minting and shifts to redemption-only mode.
This guarantees that USDm liabilities are always backed by a credible, external source of trust, Ethereum, and that growth is strictly limited to what the system can secure.
7. Yield Mechanics: No Emissions, Just Strategy
Yield in USDm is produced by a decentralized network of execution agents, not from emissions or dilution.
These agents compete to outperform a dynamic network-wide benchmark Deploy capital across arbitrage, liquidation flows, and DEX routing They are evaluated continuously by protocol-level risk managers
They generate 20% of the yield directly to Security Operators, incentivizing long-term infrastructure alignment and USDm wrapping into wUSDm.
8. Privacy, Policy, and Compliance by Design
Each USDm transfer emits a validity proof (SP1 zkVM → Groth16) that verifies correctness without leaking user data.
Operators play two critical roles in this system:
Attesters hold part keys in a threshold decryption scheme and can only view sensitive metadata (sender, receiver, amount) when a quorum condition is triggered. Verifiers approve proof finalization per chain, control throughput, enforce antispam logic, and uphold vault-level policy.
Unlike legacy mixers (e.g., Tornado Cash), USDm introduces programmable privacy with quorum-based compliance visibility. No single actor, not even the protocol team, can unilaterally decrypt transactions.
9. Limited Slots, Permanent Impact
The Security Operator layer is capped at a fixed number of vaults (500), with vault owners able to transfer ownership of their vaults.
Once full, new participation will require a 75% supermajority approval by existing Operators.
This ensures Predictable quorum formation
Sustainable yield routing
Long-term alignment between protocol volume and validator capacity
You don’t just run a node you own a gateway into the world’s first privacyfirst stablecoin economy.
10. Who Can Become a Security Operator?
Security Operation Vaults are open to:
Credit desks seeking yield exposure to private stablecoin activity Institutions enforcing compliance standards over the capital they interact with Wallet providers integrating programmable privacy into user-facing products DeFi protocols aiming to shape verification policy and proof throughput Large individual users or DAOs who want to enforce privacy rails for their own users
Becoming an Operator isn’t just about earning, it’s about owning the rails through which private, secure, and composable capital moves.
These actors aren’t passive recipients. By running a vault, they gain agency over USDm's transaction layer, participate in protocol-level security, and receive a share of the economic engine that powers Mynt.
In a world where transparency is default, Security Operators are the stewards of programmable privacy accountable, revenuealigned, and verifiable.
Summary
USDm isn't built on speculative emissions or yield theatrics. It's secured by Ethereum, governed by infrastructure, and grown by real user demand.
Security Operators are the foundation of this system, protecting its peg, enforcing its rules, governing it and earning from its growth.
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