The project is focus on been decentralized but their decentralization is not throughly decentralized, the image below says a lot about their limitations about their decentralization and I hope anyone planing to use in the future thread with caution.
What is the thing against decentralization there? Proof of burning and minting does not indicate centralization. You can do proof of burning in Bitcoin by sending to an address where they cannot be spent. Does this make Bitcoin centralized?
In fact, Cross-Chain Transfer Protocol (CCTP) is based primarily on burning and minting between several blockchains.
The burning code is something like
const burnUSDM = await adaTokenMessengerContract.call("depositForBurn", [
amount,
destinationAddressInBytes32,
USDC_UDSM_CONTRACT_ADDRESS,
]);
After confirming the burning, an equivalent amount will be sent from their bank account to your bank account.
They need to have several exchanges and other crypto services listing this USDM coin.
Without having real liquidity it won't really matter how good and stable token is if nobody is using it.
They do not need high liquidity to maintain the stability but they need it if large amounts of USDM are burned. This happens if panic occurs or everyone wants to burn USDM to obtain Bitcoin or dollars, then it will be the real test of the protocol.