Products
Memento Engine
Institutional-grade commodity finance, accessible to everyone. Stake $MUSD to earn 15-17% APY from real-world trade finance and producer bonds.
Overview
Memento Engine is our institutional commodity finance layer. While $MUSD already earns ~8-10% APY from vault reserves, staking it in Memento Engine provides additional yield from commodity trade finance, bringing total returns to 15-17% APY.
$MUSD
~8-10% APY
$sMUSD
15-17% APY
+6-8%
Extra Yield
Q1 2026
Launch
The Three Tokens
Memento Engine works with three tokens in the ecosystem:
| Token | Type | Yield | Description |
|---|---|---|---|
| $MUSD | Yield-bearing stablecoin | ~8-10% APY | Base yield from vault reserves |
| $sMUSD | Staked $MUSD | 15-17% APY total | $MUSD yield + commodity finance |
| $MM | Utility | N/A | Buy on DEX, benefits from buyback & burn |
Two Layers of Yield
$MUSD already earns ~8-10% APY from the 60% of reserves deployed in Memento Vaults (which generate 9-14% APY). By staking $MUSD in Memento Engine, you receive $sMUSD which earns additional yield from institutional commodity finance, bringing total returns to 15-17% APY.
How It Works
Swap USDC → $MUSD
Swap your USDC for $MUSD on the Memento dApp. A 1% fee applies, which is used to buy and burn $MM permanently. Your $MUSD immediately starts earning ~8-10% APY from vault reserves.
Stake $MUSD → $sMUSD
Stake your $MUSD in Memento Engine (0% fee). You receive $sMUSD, which earns additional yield from institutional commodity finance on top of the base $MUSD yield.
Earn Additional Yield
Your $sMUSD accrues value from both the base $MUSD yield (vault reserves) and additional yield from trade finance, collateralized lending and producer bonds. Total APY: 15-17%.
Unstake $sMUSD → $MUSD
Unstake anytime (0% fee) to receive your $MUSD plus accrued yield. Example: 1,000 $sMUSD after 1 year at 16% APY = ~1,160 $MUSD.
Swap $MUSD → USDC
Swap your $MUSD back to USDC whenever you want. A 1% fee applies, which is used to buy and burn $MM.
Yield Pools
$sMUSD earns additional yield (on top of $MUSD base yield) from four institutional-grade commodity finance pools:
Trade Finance
40%Pre-export financing to commodity producers, secured by physical shipments and off-take agreements
10-15%
Collateralized Lending
35%Overcollateralized loans to commodity traders with real-time monitoring and auto-liquidation
8-12%
Producer Bonds
15%Investment-grade corporate bonds from established commodity producers (mining, energy, agriculture)
5-8%
Liquid Reserve
10%Held in liquid instruments for instant unstaking requests
3-5%
Blended APY Calculation
| Pool | Allocation | APY (Mid) | Contribution |
|---|---|---|---|
| Trade Finance | 40% | 12.5% | 5.0% |
| Collateralized Lending | 35% | 10% | 3.5% |
| Producer Bonds | 15% | 6.5% | 0.98% |
| Liquid Reserve | 10% | 4% | 0.4% |
| Gross Engine Yield | 9.88% | ||
| Platform Fee | -10% | -0.99% | |
| Net Additional Yield | ~8.9% |
Combined with $MUSD base yield (~8-10%), total $sMUSD APY: 15-17% (varies with market conditions)
How We Compare
Memento Engine's yields are in line with established institutional DeFi lending protocols:
| Protocol | Model | APY Range |
|---|---|---|
| Maple Finance | Institutional lending | 8-12% |
| Goldfinch | Emerging market loans | 10-15% |
| Centrifuge | Trade finance RWA | 8-12% |
| Credix | LatAm trade finance | 10-14% |
| Memento Engine | Commodity trade finance | 15-17% (incl. base) |
Why Our Yields Are Higher
- Stacked yield: $sMUSD combines vault yield (~8-10%) with Engine yield (~6-8%)
- Commodity premium: Trade finance in commodity markets commands higher rates than general corporate lending
- Emerging market exposure: Financing producers in developing regions offers yield premium
- Physical collateral: Loans secured by real commodities reduce default risk, allowing competitive rates
Underwriting & Credit
Memento Engine applies institutional-grade underwriting standards to all loans:
Borrower Due Diligence
Every borrower undergoes comprehensive evaluation before approval:
- Financial statement analysis (audited financials required)
- Credit history and payment track record
- Operational capacity and management assessment
- Legal and regulatory compliance verification
- Existing banking relationships and credit facilities
Loan Structuring
Each loan is structured with multiple layers of protection:
- Overcollateralization: Minimum 120% LTV for trade finance, 150% for other loans
- Short duration: 30-180 day terms reduce exposure to market changes
- Collateral custody: Physical commodities held in bonded warehouses
- Insurance: All collateral insured against loss, theft and damage
Credit Committee
All loans above $1M require approval from the Memento Credit Committee, composed of experienced credit professionals with backgrounds in commodity finance, trade finance and institutional lending. The committee meets weekly to review new loan applications and monitor existing portfolio performance.
Collateralization Requirements
Strict collateralization requirements protect lenders across all loan types:
| Loan Type | Min LTV | Collateral Type | Margin Call |
|---|---|---|---|
| Trade Finance | 120% | Physical commodity (warehouse) | At 110% |
| Collateralized Lending | 150% | Liquid digital assets | At 130% |
| Producer Bonds | N/A | Corporate guarantee | Credit downgrade |
Real-Time Monitoring
All loans are monitored in real-time through our smart contract infrastructure. For collateralized lending, oracle price feeds track collateral values continuously. If collateral value drops below margin call threshold, borrowers are automatically notified and given 24 hours to post additional collateral.
Trade Finance Deep Dive
The largest pool (40%) provides short-term loans to commodity producers secured by physical shipments:
Example: Gold Mining Company Loan
- Mining company needs $5M working capital
- Posts $6M gold (ready to ship) as collateral (120%+ overcollateralized)
- Memento Engine lends $5M at 12% APY
- Secured by: physical gold in bonded warehouse, insurance, off-take agreement
- Repaid in 90 days when gold is delivered to buyer
Why It's Safe
Default & Impairment Handling
Memento Engine has clear procedures for handling loan defaults and impairments:
Margin Call Process
When collateral value drops below margin call threshold, borrowers receive immediate notification and have 24 hours to post additional collateral. If not remedied, the loan enters pre-liquidation status.
Liquidation
For collateralized lending, automated liquidation occurs if collateral falls below 110% LTV. Collateral is sold on open markets or through established commodity trading partners. For trade finance, physical commodities are sold to the committed buyer or on spot markets.
Impairment Recognition
Loans are marked as impaired after 30 days of non-payment. Impaired loans are written down based on expected recovery value. Any shortfall is absorbed by the protocol reserve before impacting $sMUSD holders.
Protocol Reserve
5% of gross yield is retained in a protocol reserve to cover potential defaults. This reserve acts as first-loss capital, protecting $sMUSD holders from minor impairments.
Risk Acknowledgment
Risk Management
Memento Engine employs multiple risk management strategies:
Diversification
- Borrower limits: No single borrower exceeds 10% of pool
- Sector limits: No single commodity category exceeds 30%
- Geographic limits: Exposure spread across multiple regions
Duration Management
- Weighted average loan duration: 60-90 days
- Maximum single loan term: 180 days
- Staggered maturities ensure continuous liquidity
Liquidity Management
- 10% of pool held in liquid reserve at all times
- Additional liquidity from maturing loans (rolling 30-day basis)
- Emergency credit line for large redemption events
Risk Disclosures
Users should understand all risks before staking in Memento Engine. Higher yields come with higher risks:
Credit Risk
Borrowers may default on loans. While overcollateralization and diversification provide protection, severe market conditions or coordinated defaults could result in losses that exceed the protocol reserve. Emerging market borrowers carry higher default risk than developed market counterparts.
Commodity Price Risk
Physical commodity collateral is subject to price volatility. Rapid price declines could result in undercollateralization before liquidation can occur. Commodity markets can experience significant price swings.
Liquidity Risk
Large unstaking requests may experience delays if liquid reserve is depleted. In extreme scenarios, users may need to wait for loan maturities to redeem.
Smart Contract Risk
Memento Engine relies on smart contracts that may contain undiscovered vulnerabilities. While audited, no audit guarantees complete security.
Counterparty Risk
Memento Engine relies on third parties including custodians, insurers and commodity trading partners. Failure of these counterparties could impact collateral recovery.
Yield Variability
Advertised APY ranges (15-17%) are targets based on current market conditions. Actual yields may be higher or lower depending on loan demand, default rates and market conditions. Past performance is not indicative of future results.
Not FDIC Insured
Commodity Categories
Memento Engine provides financing to producers across 5 major commodity categories, diversifying risk and capturing yield from the global commodity trade:
| Category | Assets |
|---|---|
| Precious Metals | Gold, Silver, Platinum |
| Energy | Oil, Natural Gas, Coal |
| Base Metals | Copper, Zinc, Nickel, Aluminum |
| Strategic | Uranium, Lithium, Cobalt |
| Agricultural | Wheat, Corn, Coffee, Cocoa |
Fee Structure
| Action | Fee | Recipient |
|---|---|---|
| USDC → $MUSD (swap) | 1% | $MM Buyback & Burn |
| $MUSD → USDC (swap) | 1% | $MM Buyback & Burn |
| $MUSD → $sMUSD (stake) | 0% | Free |
| $sMUSD → $MUSD (unstake) | 0% | Free |
| Platform fee on yield | 10% | Protocol operations |
$MM Buyback & Burn Flywheel
100% of swap fees are used to buy $MM from DEX and burn it permanently:
- More $MUSD adoption → More swap volume
- More swap volume → More fees collected
- More fees → More $MM burned
- $MM supply decreases → Value accrues to remaining holders
Example User Journey
START: User has 10,000 USDC
STEP 1: Swap USDC → $MUSD
- • 10,000 USDC swapped
- • 1% fee = 100 USDC → $MM buyback & burn
- • Receives: 9,900 $MUSD
STEP 2: Stake $MUSD → $sMUSD
- • 9,900 $MUSD staked (0% fee)
- • Receives: 9,900 $sMUSD
1 YEAR LATER (at 16% APY)
STEP 3: Unstake $sMUSD → $MUSD
- • 9,900 $sMUSD unstaked (0% fee)
- • Receives: 11,484 $MUSD (9,900 + 1,584 yield)
STEP 4: Swap $MUSD → USDC
- • 11,484 $MUSD swapped
- • 1% fee = 115 USDC → $MM buyback & burn
- • Receives: 11,369 USDC
RESULT
Started: 10,000 USDC
Ended: 11,369 USDC
Profit: 1,369 USDC (13.7% net after all fees)
Fees: 215 USDC total → All burned as $MM
Why This Model Is Credible
Memento Engine is based on established financial markets and proven DeFi precedents:
Traditional Finance Equivalents
| What We Do | Traditional Equivalent | Market Size |
|---|---|---|
| Trade Finance | Standard Chartered, ING | $10T+/year |
| Collateralized Lending | Commodity prime brokers | $500B+ |
| Producer Bonds | Corporate bond markets | $15T+ |
Why Commodity Finance Pays More
- Access premium: Traditional banks underserve mid-market commodity producers
- Operational complexity: Physical commodity financing requires specialized expertise
- Geographic premium: Emerging market producers pay higher rates for capital access
- Short duration: Higher annualized rates on 30-180 day loans vs. long-term bonds
Legal & Compliance
Memento Engine operates through a compliant legal structure:
Memento Foundation (BVI)
- Oversees $MUSD reserve and $MM token
- Manages protocol governance and upgrades
Memento Engine SPV (Cayman)
- Holds commodity loans and bonds
- Issues $sMUSD tokens
- Bankruptcy-remote from Memento Foundation
Transparency & Audits
- Daily on-chain attestations of $MUSD backing
- Monthly third-party audits of reserves and loan portfolio
- Public dashboard with real-time pool metrics
Learn More About $MUSD
Coming Q1 2026