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.
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.
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.
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.
Arbitrage opportunities between mAssets and underlying bAssets.
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.
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.
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.