Getting Started

πŸ‘‹ Welcome to mStable's docs. This is a live document that will be updated as mStable evolves. Currently, we aim to provide a high level overview of the protocol and its components.

These docs are still being worked on. Some parts may be unfinished or pending updates.

What is mStable?

mStable unites stablecoins, lending and swapping into one standard..

Three major problems confront stablecoin users:

  • significant fragmentation in same-peg assets

  • lack of native yield when it is being increasingly demanded by users

  • lack of insurance against permanent capital loss

Our products (SWAP, SAVE and EARN) are built specifically to address these pain-points.

​mStable assets represent some underlying value peg and are minted/redeemed on-chain via smart contracts. mASSETS are backed 1:1 by a basket of existing tokenised same-base assets (hereafter bASSETS).

Each mASSET is a liquidity share for its asset pool as well as a medium of exchange, unit of account and store of value in its own right.

Each mASSET has an outsized native interest rate that is derived from lending bASSETS on third party lending protocols combined with fees collected from mStable's SWAP product.

Users can swap between bASSETS with zero price slippage, regardless of order size. For example, in mUSD, uses are able to swap 1 DAI for 1 USDC at no cost, except gas and a small fee.

The protocol token Meta (MTA) serves as insurance against permanent loss for all mASSETS. Those who hold Meta can stake their tokens to become governors, allowing them to participate in governance of the system. In order to achieve long-term value of Meta, these governors are motivated to seek stability through the diversification and growth of mStable.

Characteristics

  • Easy - mStable is a one-stop solution for stablecoin users.

  • Robust - Collateral is diversified, exterior to the system and ultimately secured by Meta.

  • Stable - mStable's liquidity shares are tokenized assets in their own right.

  • Decentralized - Meta embeds the incentives required to govern a decentralized system.

  • Built for Rapid Scaling - 25% of Meta is emitted in a bootstrapping rewards pool.

Use cases

  • Yield and Return

    • mASSETS earn an outsized yield (interest + swap fees). See SAVE.

    • mStable is built so that those that use it or contribute to its growth are rewarded for doing so. See Meta Rewards.

  • Traders & Arbitrageurs

    • Significant arbitrage opportunities will exist using mStable's Zero Slippage Swaps. See SWAP.

  • Stablecoin 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 Meta. See EARN.

  • SDK Integrations

    • dApps: mStable increases a dApp's user base while increasing usability. mStable allows dApps to 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.

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

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

    • Participating dApps and exchanges receive Meta.

Features

Now you've got the high level! Time to dig a little deeper.