mStable assets are liquidity shares that also work as Stablecoins. Their first asset is mUSD. You have the option of minting mUSD assets with your Stablecoin at a ratio of 1:1. Additionally, you can also save mUSD in the mStable savings contract. Other than that, you can also swap USD Stablecoins at zero slippage and earn DeFi ecosystem rewards using mStable.
By diminishing complexity and fragmentation, mStable is a step-change in the usability of Stablecoins.
Characteristics of mStable
- Simple and easy. It is a one-stop solution for Stablecoin users.
- Robust. Collateral is diversified and exterior to the system and ultimately secured by Meta,
- Stability. mStable’s liquidity shares are tokenized assets in their own right.
- Decentralized. Meta embeds the incentives needed for governing a decentralized system.
- It is created for rapid scaling. One-quarter of Meta is emitted in a bootstrapping rewards pool.
mStable can support several mASSETS. Every mASSET is tied to a unique asset such as fiat currency, a consumer price index, a commodity such as gold, or a cryptocurrency like bitcoin. Each Masset is backed by a basket of already available whitelisted tokenized assets of the same peg.
mASSETS are minted without permission and on-chain through smart contracts.
- To mint an mUSD, a user sends 1USDT and receives 1mUSD
- To redeem, a user sends an mUSD to the contract and can select which bASSET to receive for the swap fee.
This is the mStable protocol token that earns mStable assets for insuring mStable and offers early users rewards. Meta is at the centre of the mStable Standard. It makes sure that there’s the integrity of the system in case of an irreversible loss.
There are three major functions of Meta:
- Acting as the ultimate source of re-collateralization
- Co-ordinating decentralized governance
- Incentivizing bootstrapping of mASSET liquidity, utility, and a community of governors.
To incentivize the best decision making, Meta governors will be rewarded when mStable grows safely and are partially liquidated as part of re-collateralization. To participate as a Meta governor, token holders must stake their MTA and participate in the decisions related to governance.
mStable can be integrated into applications or exchanges such as SDK. In other words, it connects Stablecoins for end users. SDK stands for Software Development Kit. The diversity of Stablecoin has created a cracked environment where exchanges and dApps need to cater to a wide array of USD-pegged tokens.
Fragmentation opens room for choice, but it destroys liquidity and brings about confusing user experience. This is where the mStable SDK comes in:
- Users deposit any whitelisted assets on the application.
- Deposits are automatically minted into a mStable asset.
- mStable asset appears in the user’s account as USD, EUR, etc.
- Users can also redeem their assets into underlying or offboard with the mStable asset.
- Participating Applications receives the Meta award.
Open Reward Pool
You will be rewarded for contributing to mStable’s liquidity and utility. mStable utilizes reward mechanisms to incentivize its users to act in the ecosystem’s best interest as it expands. These rewards are used for ecosystem incentives and are paid out in monthly tranches.
The emission of these rewards remains stable or increases over the first year from the beginning of the program and then gradually reduces until the pool is depleted. This reward pool is expected to be a long-term feature of the mStable platform.
To ensure protocol security, several measures are taken that involve keeping things secure. A multi-faceted approach is needed to ensure the safety and optimization of a live protocol. Far from a macro-level architecture and a robust governance decentralization plan, the micro-level architecture, code formatting, testing procedures, auditing, and documentation plays a vital role in the entire process.