Glossary of Terms

๐Ÿ™Š Common terminology used throughout the mStable suite

Auto-Redistribution Event (ARE)

when a collateral asset deviates from its peg beyond a predetermined threshold, the basket is redefined to immediately exclude that asset from the basket. Users are only permitted to mint the mAsset with the remaining collateral assets while redemption still includes the affected asset. An ARE immediately and automatically submits a proposal to the governance system which asks whether a Re-collateralisation is required.

Basket

In the context of The mStable Standard, a basket refers to the underlying weighted selection of stablecoins that collateralises an mAsset. Baskets can change over time as MTA holders vote to add, remove, or change the weightings of individual stablecoins within the basket.

Basket Asset / bAsset

A Basket Asset is one of the underlying stablecoins present in a Basket. It has a 'Max Weight' - which is the maximum proportion of the mAssets collateral it is allowed to represent.

Forging

An action of Minting or Redeeming mAssets on-chain through the smart contract system.

Meta-Stablecoin

A stablecoin that is collateralised and diversified by an underlying basket of stablecoins.

Meta / MTA

The Meta token (ticker symbol MTA) is an ERC-20 utility token on Ethereum, coordinating decentralised governance of mStable assets, and as a resource for re-collateralisation.

mMeta

A future super-meta asset consisting for a basket of mStable assets. mStable asset โ€“ a meta-stablecoin of a particular asset class, implemented using the mStable Standard. E.g. mUSD, mJPY, mGold

mStable / the mStable Standard

A multi-token smart contract system developed by Stability Labs that is future-proofed, verifiably collateralised, provides on-chain minting and redemption, and is coordinated through decentralised governance.

mStable Assets / mAssets

The meta-stablecoins created on The mStable Standard, beginning with mUSD and mGold.

mUSD

An mStable Asset pegged to the United States Dollar, and backed by a basket of USD-pegged stablecoins.

Price oracle

A service/API which provides real-time price data used by mStable's smart contracts to calculate fees and determine de-pegging events.

Rebalancing

The mechanism whereby, after a basket change for a mStable Asset, users will receive quantities of the underlying stablecoins such that there is a movement towards the new basketโ€™s composition.

Re-collateralisation

The mechanism whereby, when a stablecoin in a basket deviates from its peg beyond a predetermined amount, Meta is diluted and sold off in order to raise sufficient funds to restore full collateralisation.

Stability Labs

The software development company developing The mStable Standard.

Stablecoin

Cryptocurrencies designed to minimise the effect of price volatility, usually via pegging to a particular asset class (e.g. USD or Gold).