Over 72 hours, the algorithm carried out 72 consecutive hourly rollovers (loan extensions) without manual intervention, independently handling collateral locking, interest calculation, and clearing. At the same time, the total network fees for all cycles amounted to less than one U.S. cent.
The transaction parameters were aligned with the standards of the American association SIFMA:
- Collateral and settlement: USDM1 bonds from M1X Global (backed 1:1 by U.S. Treasury bills, governed by New York law) against USDC stablecoins.
- Pricing and risks: The rate was fixed at SOFR + 10 bps (3.98% per annum), and the value of the collateral was monitored by Chainlink oracles with a 2% haircut and an LTV limit of 98%.
- Compliance: Counterparty identification and on-chain KYC/AML checks were performed automatically at the code level through the ERC-3643 / SEP-57 standard.
The precedent changes the nature of capital use within the Stellar network itself. According to rwa.xyz, by the end of October 2026, the platform had accumulated an array of RWA assets worth $3.64 billion, divided mainly between money market funds from Spicet Asset Management ($2.4 billion), Oasis ($557.92 million), and Franklin Templeton ($411.90 million).
The USDM1 instrument integrated an instant rehypothecation mechanism into this liquidity pool. As a result, the financial industry received working proof that resources from sovereign debt can be released and redistributed in 24/7/365 mode with near-zero operating costs.
