M²F - Micro Merchant Finance

Table of Contents

• Demo
• Problem Description
• Solution Overview
• Architecture
• Key Metrics
• Deployed Contracts
• Setup
• References

Demo

🚀 Live Demo: M²F Demo Platform

Key Features Demonstrated:

• Merchant onboarding with Self Protocol verification
• Credit Default Swap (CDS) creation and management
• Mento stablecoin integration for risk mitigation
• Mobile-first interface for global accessibility

Problem Description

Financial Exclusion Crisis: 1.7B adults globally lack access to formal financial services, particularly merchants in emerging markets who face:

• High Transaction Costs: Traditional DeFi platforms charge 0.3-1% fees, making micro-transactions unviable
• Credit Access Barriers: No credit history or collateral requirements exclude small merchants
• Privacy Concerns: Financial data exposure limits merchant participation
• Stability Risks: Volatile crypto prices create operational challenges for merchants

Market Gap: Existing AMMs focus on large-scale trading, ignoring micro-finance needs of underserved merchant communities.

Solution Overview

M²F (Micro Merchant Finance) is a specialized AMM protocol built on Celo that enables micro-finance solutions for merchants through:

• Credit Default Swaps (CDS): ERC6909-based tokens representing merchant credit risk
• Mento Integration: Leverages Celo's stablecoin ecosystem for price stability
• Self Protocol: Privacy-preserving identity verification for merchant onboarding
• Algebra Protocol: High-efficiency AMM with custom hooks for merchant-specific features

Core Solution Architecture

┌─────────────────┐    ┌──────────────────┐    ┌─────────────────┐
│   Merchants     │◄──►│   M²F Protocol   │◄──►│   Mento/Celo    │
│  (Mobile-First) │    │  (CDS + AMM)     │    │  (Stability)    │
└─────────────────┘    └──────────────────┘    └─────────────────┘
         │                       │                       │
         ▼                       ▼                       ▼
┌─────────────────┐    ┌──────────────────┐    ┌─────────────────┐
│  Self Protocol  │    │  Algebra Hooks   │    │  Credit Risk    │
│  (Privacy)      │    │  (Custom Logic)  │    │  Assessment     │
└─────────────────┘    └──────────────────┘    └─────────────────┘

Architecture

Smart Contract Layer:

• CDSFactory.sol: Deploys Credit Default Swap contracts for merchants
• MerchantDataMediator.sol: Manages merchant data and credit assessments
• CollateralFilter.sol: Validates acceptable collateral types
• MerchantIdentityVerification.sol: Integrates with Self Protocol

Integration Layer:

• Algebra Protocol: Custom hooks for merchant-specific AMM logic
• Mento Protocol: Stablecoin selection and price stability
• Self Protocol: Privacy-preserving identity verification

Frontend Layer:

• Mobile-first React application
• QR code integration for merchant onboarding
• Real-time credit risk monitoring dashboard

Key Metrics

Target Performance:

• Transaction Fees: <0.1% (vs 0.3-1% traditional DeFi)
• Gas Costs: <$0.01 per transaction (Celo advantage)
• Merchant Onboarding: <5 minutes with Self Protocol
• Credit Assessment: Real-time risk scoring
• Mobile Compatibility: 100% mobile-first design

Success Indicators:

• 10,000+ active merchants by Q2 2024
• $1M+ daily transaction volume
• 95%+ uptime across all networks
• <2% default rate on CDS contracts

Deployed Contracts

Addresses

Celo Sepolia

Contract	Address	Explorer
AlgebraFactory	0x1118879CCCe8A1237C91a5256ad1796Ad9085B91	Celo Sepolia
AlgebraPoolDeployer	0xb33166BBC9f89D0C7525fF4d19526b616a26224D	Celo Sepolia
Reserve	0xA53fc18149A9468019D32BbDaff201FeD8E7a805	Celo Sepolia
USDC	0x01C5C0122039549AD1493B8220cABEdD739BC44E	Celo Sepolia
cUSD	0xFF92b6212538479d8561B38693C9eee5EF6d1F68	Celo Sepolia
Mento Selector	0x124eff2236c00357B7C84442af0BCd7dC10f74F8	Celo Sepolia
CDS Factory	0xd8c4Aa030C1581a7a5CCD100C123668899f4A69d	Celo Sepolia
Collateral Filter	0xeb68CF4BF61f968605418Cd83d011091b2C1cc1C	Celo Sepolia
Merchant Data Mediator	0x71542aEe829993145Cdd8B98829081d2fc358355	Celo Sepolia
Merchant Identity Verification	0x8A213033892304A7a5328Fb3f6bdAfc8f93cCb49	Celo Sepolia

Celo Alfajores

Contract	Address	Explorer
AlgebraFactory	0x4F25983b470f0061CE8654607A9fF624344A6FBa	Celo Alfajores
AlgebraPoolDeployer	0xd4AC5e01b34526363828d35c4783Ebd4296c93A6	Celo Alfajores
Always_cCOP_MentoSelector_Alfajores	0x8d460Ef1587dBE692ACE520e9bBBef25A9ceCa11	Celo Alfajores
CDSFactory	0x03b2844f3DE75dD4582dAcE1fC789539996e8DF2	Celo Alfajores
CollateralFilter	0x730033939014C4F62E4b7108B7952917B9F516d4	Celo Alfajores
CurrencyCollateralValidator	0x2f1AE40ca3a236c50B39Db42BCCbBb525063253e	Celo Alfajores
MerchantDataMediator	0xA98b147CaB207769655B751278DF739730eE25bD	Celo Alfajores

Setup

Prerequisites

• Node.js (v18 or higher)
• Foundry
• Git
• Alchemy API Key (for RPC endpoints)

Quick Start

# Clone and setup in one command
git clone https://github.com/M-F-Micro-Merchant-Finance/monorepo.git
cd monorepo
make setup

Installation

Option 1: Automated Setup (Recommended)

# Complete setup with one command
make setup

This will:

• Install all dependencies
• Set up environment variables
• Compile contracts
• Run initial tests

Option 2: Manual Setup

# Install dependencies
npm install
forge install

# Create environment file
cp .env.example .env

# Compile contracts
forge build

# Run tests
forge test

Environment Configuration

1. Copy the environment template:

cp .env.example .env

2. Update .env with your configuration:

# Alchemy API Keys
ALCHEMY_API_KEY=your_alchemy_api_key_here

# Explorer API Keys
CELO_SEPOLIA_EXPLORER_API_KEY=your_celo_sepolia_key
CELO_ALFAJORES_EXPLORER_API_KEY=your_celo_alfajores_key

# Private Keys (for deployment)
PRIVATE_KEY=your_private_key_here

# Network Configuration
CELO_RPC_URL=https://celo-mainnet.g.alchemy.com/v2/${ALCHEMY_API_KEY}
CELO_SEPOLIA_RPC_URL=https://celo-sepolia.g.alchemy.com/v2/${ALCHEMY_API_KEY}
CELO_ALFAJORES_RPC_URL=https://celo-alfajores.g.alchemy.com/v2/${ALCHEMY_API_KEY}

Build

# Compile all contracts
forge build

# Build with optimizations
forge build --optimize --optimizer-runs 200

Test

# Run all tests
forge test



# Run tests with gas reporting
forge test --gas-report

# Run tests with coverage
forge coverage

References

• Celo Documentation
• Algebra Protocol
• Self Protocol
• Mento Protocol
• Foundry Book
• Uniswap V4 Hooks