Full-reserve backed tokens, with deterministic settlement on Base.
DMF issues dmfUSD — a fully USDC-backed digital token on Base. Every dmfUSD in circulation is directly backed by USDC held in an immutable smart contract. No rehypothecation, no leverage, no governance to change the rules.
Digital Monetary Framework (DMF) is a non-custodial protocol on Base. It issues dmfUSD — a fully USDC-backed token where every unit in circulation represents a direct, verifiable claim on USDC held in the contract's reserve.
The protocol operates through a single, immutable smart contract — no proxy, no upgrade mechanism, no administrative controls that can freeze or seize tokens. Minting and redemption are deterministic: the same inputs always produce the same outputs, enforced by the contract's source code verified on BaseScan.
DMF issues dmfUSD, a fully backed digital token on Base. Each dmfUSD in circulation is backed 1:1 by USDC held in the contract's reserve. The model is the simplest form of stable value: one unit in, one token out; one token in, one unit out.
When you deposit USDC, the contract evaluates a deterministic variable fee — 0.25% capped at $20 — then mints dmfUSD for the net amount. 15 basis points of every fee stays in the USDC reserve as additional backing; 10 basis points is minted as dmfUSD to developer addresses. The backing fee retained in the reserve means the backing ratio rises over time, even for holders who never transact.
When you refund, the contract burns your dmfUSD and sends you USDC from its reserves, applying the same fee formula. There is no liquidity pool, no order book, and no matching engine — settlement is deterministic and always available because the contract holds the USDC reserve.
Deterministic accounting
Fee computation uses fixed basis points and an immutable hard cap — no variable parameters, no governance to adjust rates. Reserve accounting reads liveUSDC.balanceOf(this) — no separate accounting variable that could drift from the actual reserve.
No rehypothecation
The contract never lends, invests, or rehypothecates its USDC reserves. Every USDC received stays in the contract until a user refunds their dmfUSD. The reserve is not deployed into yield farms, lending protocols, or any external strategy.
Immutable by design
dmfUSD is a single, non-upgradeable contract — no proxy, no delegatecall, no upgrade mechanism. Fee constants are set at compile time. The contract's behavior at deployment is its behavior forever.
Cross-chain routing
The core mint/refund is Base-native. For cross-chain access, DMF integrates via the DMF Swap & Bridge app, enabling single-transaction routing from any token on any supported chain into dmfUSD on Base. This is third-party infrastructure — separate risk surface from the core contract.
The dmfUSD contract is 316 lines of Solidity — minimal by design, with no delegatecall, no assembly, and no selfdestruct. Every state-changing function is protected by a reentrancy guard. Ownership uses the Ownable2Step pattern and is intended to be renounced in production.
Formal verification
- ✓Foundry — 308M+ fuzz + invariant scenarios, 0 failures
- ✓Certora Prover — 3 core invariants formally proved: supply tracking, fee cap, fee split
- ✓Slither — 0 dmfUSD-specific findings
- ✓Aderyn — 0 High findings
On-chain verifiability
- ✓Reserve balance visible on BaseScan at any time
- ✓Total supply and backing ratio computable from public reads
- ✓Fee destinations and amounts on-chain
- ✓Source code verified on BaseScan — no unverified bytecode
- ✓No proxy/upgrade — what you see is what you get, forever
Full test results, formal verification proofs, and static analysis reports are published on the Security page.
Base’s Purpose-Built Features
Base is a high-throughput EVM network designed for broad distribution, predictable costs, and deep stablecoin liquidity. DMF uses Base as its core execution environment and uses USDC as its reserve asset.
Stablecoins as Native Gas
DMF runs on Base. Users need gas on Base to execute the final mint/refund transactions.
Deterministic Sub-Second Finality
Fast confirmations and consistent execution costs make on-chain banking UX usable for everyday deposits, redemptions, and cross-chain settlement.
Global Liquidity Hub
Base has deep USDC liquidity and broad wallet/app support, enabling clean integrations and reliable settlement for a reserve-backed account unit.
EVM-Compatible Architecture
EVM compatibility keeps integrations simple and auditable while leveraging the mature Ethereum tooling ecosystem.
Why Base for DMF
USDC reserves: dmfUSD is backed by USDC reserves held by the core contract.
Distribution: Base has broad wallet support and a large user footprint, making DMF easier to access with standard tooling.
Reliable execution: Low, predictable fees make deposit/redeem flows practical at any size.
Developer-friendly: Mature EVM tooling enables faster iteration with strong security primitives.
Future-focused: Base’s ecosystem momentum aligns with DMF’s goal of a simple, transparent, reserve-backed account unit.
"Building systems where correctness and fairness depend on mathematics and consensus, not on the goodwill of third parties. This is the essence of trustlessness, the foundation of decentralized systems."
DMF embodies this principle. Every DMF operation, from depositing and withdrawing to yield distribution, is executed through immutable smart contracts. Users can verify all operations independently, ensuring trust is placed in code and mathematics, not in promises or intermediaries.