> For the complete documentation index, see [llms.txt](https://docs.monet.cash/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.monet.cash/products/how-it-works.md).

# How It Works

Monet is a stablecoins protocol allowing the creation of decentralized, capital-efficient and over-collateralized stablecoins built using a modular & upgradable architecture. 

The protocol consists of several different modules,which can be added or removed over time, from which stablecoins can be issued or minted. 

Any type of stablecoin can be deployed using Monet, for instance: USD, EUR, CHF, ETH, BTC, etc..

<figure><img src="/files/VXcgkWBBZD0aNUNBspoH" alt=""><figcaption><p>Monet - high Level Architecture</p></figcaption></figure>

Monet is designed as a modular and scalable system where each functional component exists as an independent module. These modules can be deployed, upgraded, paused, or reconfigured without disrupting the entire protocol. This gives the opportunity to launch multiple stablecoins (USDmo, EURmo, etc.), customize their parameters, and extend functionality over time.

<figure><img src="/files/xeTpzDtQleoo1gTBqzvX" alt=""><figcaption><p>Monet - Monet Stablecoins Minting Modules</p></figcaption></figure>


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