What is mStable?

The mStable Standard (or “mStable”) is a protocol that unites tokenised assets into radically safer and more useful instruments — and rewards you for contributing to its growth.

​mStable assets (hereafter mAssets) are minted/redeemed permissionlessly and on-chain via smart contracts. Each mAssets is backed 1:1 by a basket of existing tokenised same-base assets. The system token Meta (MTA) serves as a backstop for all mAssets.

MTA is used to pay redemption fees and to coordinate decentralised governance. In order to achieve long-term value of MTA, holders are motivated to seek stability through the diversification and growth of the system.

Characteristics

• Safe - Collateral is diversified, exterior to the system and ultimately backed by MTA.

• Stable - mStable makes hyper stable assets.

• Accessible - mStable dramatically simplifies user experience by transforming fragmented assets into one optimised token per peg.

• Decentralised - MTA embeds the incentives required to govern a decentralised system. MTA holders are rewarded when mStable grows securely.

• Built for Rapid Scaling - 20% of MTA is emitted in an open bootstrapping rewards pool.

Use cases

• Stablecoin Return

  • mStable is built so that those that contribute to its growth are rewarded for doing so. Go to the Native Interest Rate and Meta Rewards sections to learn more.

• Risk Averse Users

  • mStable issues assets that are more secure than the sum of their parts. Each mAsset diversifies risk between different asset issuers and stability mechanisms. The system itself is effectively over-collateralised due to each mAsset being ultimately backed by MTA.

• DApps

  • mStable increases a DApps user base while increasing usability. Accept several assets while presenting them in a more secure and user friendly way. For example, with the mStable SDK, a DApp could accept USDC, DAI, TUSD, USDT, GUSD, USDx, CUSD and present the USD asset simply as USD.

• Arbitrageurs

  • Arbitrage opportunities between mAssets and underlying bAssets.

• Exchanges

  • Futures: Instead of using a single stablecoin as the contract's basis, accept and settle in multiple. Decrease the possibility of mass liquidations due to a stablecoin peg loss.

  • Spot: Unite stablecoin liquidity into one pair: BTC/USD rather than BTC/USDT, BTC/USDC etc.

Features

• ​Minting​

• ​Redemption​

• ​Native Interest Rate​

• ​Rewards​

• ​Re-collateralisation​

• ​Meta Governance

  • ​Staking

• ​Oracles​

How it works (TLDR)

Minting & Redemption:

• Deposit any existing and accepted token into a smart contract of the same base asset, at a 1:1 ratio (mUSD, mGLD, mEUR, mGDP, mBTC etc)

• Users receive MTA or mAssets for contributing to mStable liquidity, utility and/or governance.

• Receive a redeemable token which has a value derived from the underlying assets, thus distributing and mitigating the counter-party risk. Redemptions incur a fee in mUSD.

System:

• The mStable system is decentralised and governed by holders of the system token MTA. MTA holders will decide on every basket parameter.

• mStable rebalances when a collateral asset (bAsset) goes beyond its maximum weight.

• The MTA token is the ultimate source of re-collateralisation value.

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