CDPs
Mento’s CDP system is a fork of Liquity v2 maintained in a separate repository: mento-protocol/bold. Same contract architecture and mechanics as Liquity v2, with USDm as collateral and FX-pegged Mento stables (e.g. GBPm) as the debt token; Mento deploys one independent instance per FX currency, each with its own TroveManager, StabilityPool, and FX price feed. For a protocol-level overview (what you can do, collateral vs debt, Stability Pool, app/SDK usage), see CDPs in Dive Deeper.
Contract overview
The CDP system is implemented by the Liquity v2 contract suite. Mento’s fork lives in mento-protocol/bold (not in mento-core):
BorrowerOperations
Open, adjust, and close troves; add/withdraw collateral, borrow, repay.
TroveManager
Trove state, collateralization checks, liquidations, redemption order.
Stability Pool
Holds debt-token deposits; absorbs debt from liquidated troves in exchange for collateral; used by CDPLiquidityStrategy for expansion rebalancing.
Collateral / Debt
In Mento’s fork: collateral is USDm; debt is the FX-pegged stable (e.g. GBPm) for that instance.
FXPriceFeed
Mento-specific: fetches FX rates (e.g. GBP/USD) from Mento’s OracleAdapter; supports watchdog-triggered shutdown.
SystemParams
Minimum debt, liquidation penalties, CCR/MCR/BCR, redemption fee floor, gas compensation, etc.
Liquidations, redemptions, gas compensation, and fee flows follow Liquity v2; Mento’s fork differs in collateral (USDm), debt (FX-pegged tokens), oracles (FXPriceFeed), and multi-instance deployment.
Critical risk considerations (USDm depeg risk, FX exposure for borrowers and SP depositors, Stability Pool FX loss on liquidations, and double liquidation risk from both FX moves and USDm depeg) are summarized in CDPs (Dive Deeper) and discussed in depth in the mento-protocol/bold README.
Where to find full contract documentation
Contract-level behavior, state variables, and all protocol rules are not re-documented here.
Liquity v2 documentation — technical resources and contract behavior.
Liquity v2 whitepaper — design and economics.
Mento fork: The mento-protocol/bold README describes key differences (USDm collateral, FX-pegged stables, FXPriceFeed, multi-instance architecture) and Mento-specific risks and economics. For deployment addresses, parameter choices, and integration with CDPLiquidityStrategy, see mento-core and the Deployments section.
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