MakerDAO’s Chronicle Launches RWA Oracle Integration with M^0

MakerDAO’s Chronicle is launching its real-world asset oracle via integration with the Ethereum-based stablecoin minting protocol M^0 (pronounced “M Zero”).

What are Oracles?

Oracles are entities that connect blockchains to the external world, enabling smart contracts to execute based on external inputs and outputs. Real-world assets (RWAs) are tokens representing physical assets.

Chronicle’s Role

Chronicle serves as an independent validator that verifies M^0’s collateral balances by providing up-to-date information on off-chain collateral that minters use to generate the fungible cryptodollar, $M. The M stablecoin is overcollateralized using U.S. Treasuries.

Minting Process

M, described as a decentralized, interoperable, and fungible cryptodollar, is generated by minters who lock collateral in off-chain storage. To mint M, entities require permission from the protocol’s governance. The first M tokens were minted in late July.

Future Expectations

“The M^0 team anticipates that the system will scale to several billions of dollars over the coming years, of which Chronicle will play a key role in ensuring overall transparency,” stated Chronicle founder Niklas Kunkel.

Vision for RWAs in Web3

Kunkel believes that real-world assets represent the next frontier in Web3 innovation and expressed excitement about leading in this area, collaborating with industry players to reshape the global financial order and advance true DeFi.

Partnership Benefits

Greg Di Prisco, M^0 co-founder and chief architect, emphasized that this partnership enhances the security and transparency of collateral verification processes, ensuring the integrity and reliability of the $M cryptodollar. He noted that this integration reflects M^0’s commitment to delivering absolute transparency to $M holders.

Previous Collaborations

Chronicle’s RWA oracle partnership with M^0 is part of a series of industry collaborations. It was previously selected as the launch partner for Circle’s EURC stablecoin deployment, chosen by Reserve and Re7 to secure a new market on Morpho on Layer-2 Base.

Funding Updates

M^0 previously raised $35 million in Series A funding, led by Bain Capital Crypto, with participation from Galaxy Ventures, GSR, and others.