Basket Adjustment

⚖️ mStable governors can alter bAsset maximum weights according to new market conditions or information.

Governance will control the addition/removal of bAssets and set their maximum weights.

A Basket Adjustment occurs when Governance chooses to change the maximum weight of a bAsset.

Secondly, a basket adjustment can occur when a bAsset is deemed unfit for inclusion. In this case, Governance will be able to purge that bAsset entirely.

Standard Basket Adjustment

Occurs when:

  • A bAsset's max weight is changed by Governance.

The basket adjustment mechanism allows Forging and Swapping demand to do the heavy lifting to execute the transition:

  • Minting validity remains the same. This means that if Governance lowers the maximum weight of a bAsset so that it is below its current collateral level, minting is temporary disabled with this bAsset until it is below its maximum weight.

  • The weight is lowered through allowing free swaps from that bAsset and only allowing multi-proportional redemption.

  • Users are not allowed to swap into an overweight bAsset.

Adding bAssets

Governance has the power to add bAssets to a mAsset's contract and dictate its maximum weight.

Removing bAssets

The removal of a bAsset is deemed complete when its collateral level and max weight = 0.