mAssets

๐Ÿ’ฐ mStable unites and secures tokenised assets into radically safer and more useful instruments. Our first assets include a fiat currency (mUSD), a commodity (mGLD) and Bitcoin (mBTC)

Overview

mStable can support numerous mStable assets (or โ€œmAssetsโ€). Each mAsset is pegged to a unique asset, such as fiat currency (US Dollar, Japanese Yen), a Consumer Price Index, a commodity like Gold, or a cryptocurrency like Bitcoin.

Each mAsset is backed by a basket of existing whitelisted tokenised assets of that same peg.

mAssets are minted/redeemed permissionlessly and on-chain via smart contracts. To mint an mUSD, for example, a user sends 1 USDT and receives 1 mUSD in return. To redeem, the user sends an mUSD to the contract and can choose which bAsset to receive in return. The mAsset is then burned (i.e. taken out of circulation).

Each whitelisted asset within a basket (hereafter bAsset) will have a max weight that determines its maximum possible weighting in that basket. A max weight is important as:

  • Its impact on MTA in the event of a re-collateralisation will be capped;

  • It creates an upper-bound to the amount of mAssets a user may mint for an undervalued bAsset.

The max weight can be adjusted through mStableโ€™s governance system in response to new information or changing market conditions. New bAssets can be added should they be deemed secure and stable by the governance system. Conversely, a bAsset can be removed should the governance system consider it too risky for inclusion in a basket. Every mAsset is protected by a system token Meta (MTA) which serves as a backstop for all mStable assets.

Possible mAssets:

  • mUSD ๐Ÿ’ต

  • mGLD๐Ÿ†

  • mEUR ๐Ÿ’ถ

  • mGDP ๐Ÿ’ท

  • mBTC โ’ท

mMeta โ“‚

Once a sufficient volume of mAssets have been created, the protocol will enable the creation of a basket of mAssets called mMeta. This will represent a global diversified basket of pegged assets - a unit of account for the digital world.

As with other mAssets, the MTA holders will be the governors of mMeta. However, there will be no fees for the mMeta asset and MTA will not act as a direct backstop to mMeta. This is because the underlying assets of mMeta are mAssets (which already incur fees and can be re-collateralised by MTA).