The earlier, Celo-native version of Mento's reserve-backed stablecoin system — its Monad presence is real but genuinely unclear, without a matching launch announcement the way V3 got.
Mento V2 ("Multi-Collateral Mento") is the earlier, Celo-native version of the protocol: an open, permissionless system for minting stablecoins against a shared, diversified crypto reserve, maintained at a mandated 110% collateralization ratio (with a governance floor requiring at least 100% of that backing in stable assets). Users mint a stablecoin by depositing reserve-eligible collateral and can redeem it back at the peg rate. The exchange engine, called the BiPoolManager, is a genuinely virtual AMM — Mento's own documentation is explicit that there's no user-provided liquidity and the vAMM holds no assets of its own; pricing is computed against configured "bucket sizes" rather than real pooled tokens. Each pool selects one of two pricing modules: a constant-sum module for stable-to-stable pairs, giving near-zero slippage at a fixed marginal price, or a constant-product module for stable-to-volatile-collateral pairs like cUSD against CELO.
Mento's own contract-address registry lists a dedicated Monad Mainnet tab, and it contains only V3-era contracts — a ChainlinkRelayerFactory, FPMM Factory, OracleAdapter, Router, ReserveV2 and the FPMM pools covered in the V3 article. No Broker, no BiPoolManager, and neither pricing module appears under the Monad tab anywhere; those V2-specific contracts exist only under Celo's own mainnet and testnet tabs. This resolves what was previously an open question: any TVL trackers attributing activity to "Mento V2 on Monad" are most likely picking up bridged Mento-stable or reserve-related assets rather than an actual deployed V2 mint-and-redeem system, since the contracts required for V2 to function simply aren't present on the chain. V2 itself is not deprecated, however — it still actively runs cUSD, cEUR, cREAL, eXOF and other stablecoins on Celo mainnet in parallel with V3, which was added later as a separate, newer rail rather than a replacement.
Against V3's Fixed-Price Market Maker, V2's BiPoolManager is the earlier design: a genuinely virtual AMM pricing off configurable buckets rather than V3's Chainlink-quoted FPMM, and V2 never needed a Market-Hours breaker the way V3 does since it trades crypto-native stables around the clock rather than FX pairs tied to TradFi market hours. Against Curve's StableSwap, the comparison is sharper than it looks at first glance: Curve blends its two pricing regimes within one continuous formula backed by real, user-supplied pooled liquidity that LPs deposit and earn fees from, while Mento V2 selects between two discrete modules and has no real pooled liquidity at all — it's closer to a reserve-backed mint/redeem system than to Curve's genuine LP-pool AMM. Against centralized stablecoins like USDC or USDT, Mento V2 offers decentralized, on-chain-verifiable reserves and MENTO-holder governance, at the cost of the capital inefficiency that comes with a 110% overcollateralization mandate versus a fiat issuer's 1:1 backing.
Mento stablecoins are only as sound as the reserve's asset mix — a sharp drop in the reserve's largest holdings threatens full backing. Pricing via a virtual AMM is algorithmic rather than market-driven by real liquidity, which has historically been a source of peg wobbles during stress; the one documented depeg (cUSD, March 2023) tracked the broader USDC/SVB-contagion event rather than a flaw specific to Mento's design, and the reserve's 2.5x overcollateralization at the time was cited as the buffer that helped cUSD recover. Since V2 isn't actually deployed on Monad, none of this risk profile is relevant to a Monad user directly — it's included here because trackers can misleadingly suggest otherwise.
No. Mento's own contract registry lists only V3 contracts under its Monad Mainnet tab — no Broker, BiPoolManager, or V2 pricing modules are deployed there at all. Any tracker attributing TVL to "Mento V2 on Monad" is most likely picking up bridged assets, not an actual V2 deployment.
V2's BiPoolManager prices swaps off virtual buckets using constant-sum or constant-product modules with no real pooled liquidity — you mint and redeem against a shared reserve. V3 replaces this for new stablecoins with a Fixed-Price Market Maker quoting directly from Chainlink (no curve at all) plus a Liquity-v2-fork CDP system for user-driven minting.
Still live and actively used — V2's Broker and BiPoolManager contracts run cUSD, cEUR, cREAL, eXOF and other stablecoins on Celo mainnet today. V3 was added as a parallel, newer rail for new FX-denominated stables rather than a replacement.
Sources: Celo Stability Algorithm (Mento) — Celo Docs, Mento contract deployment addresses — GitHub, MU04: phase out V1, fully transition to V2 — Celo Forum
Last reviewed 2026-07-08. More Monad research.
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