Getting Started

๐Ÿ‘‹ 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

What is mStable?

The mStable Standard (or โ€œmStableโ€) is a protocol that unites tokenised assets into radically safer and more useful instrumentsโ€Šโ€”โ€Šand rewards you for contributing to its growth.

โ€‹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

  • 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

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.

โ€‹

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