Re-collateralization Proposal

πŸ₯ Re-collateralization would protect mStable assets in the event of a bAsset losing its peg.

This feature has not been fully specified and is not yet implemented. mStable stakeholders may propose this feature to be launched in Phase 2 of the protocol


If a bAsset loses its peg, mStable could purge that asset and recover lost value in various ways. Numerous approaches as to how to execute this have been proposed, and it is yet to be decided which approach would be taken if this were to be implemented. This feature's implementation will be decided on by mStable governors participating in decentralised governance in future.

This functionality is still in development, and will be described in more detail as implementation approaches.