The mStable protocol is built with a focus on security, modularity and composibility

How does it all work?

The protocol exists as open-access Smart Contracts on the Ethereum blockchain. The architecture is reasonably straightforward, and consists of a number of modules. Each module provides useful interfaces or support to each other, ultimately facilitating the protection and operation of the mAsset(s).

mAsset interaction

Minting, Swapping and Redeeming in an mAsset is executed by interacting directly with the mAsset contract, with composition managed by the BasketManager. bAssets are integrated with lending protocols (Aave and Compound) to generate interest which is accrued in mAsset terms. This interaction is performed through a market specific Integration contract.

mAssets can be deposited to earn native interest through their respective Savings Contract.

‌Upgrading components, while simply updating an address, should not be taken lightly. mStable employs a multitude of processes to ensure that upgrades go smoothly and the system remains fully robust.

Delayed Upgrades

Module upgrades through the Nexus come in a 2 step process. Step 1 is a successful governance proposal to upgrade the module. In order to confirm this upgrade the system must wait a predefined length of time (circa 1 week). This allows users to opt-out of the upgrade, should they no longer wish to hold mAssets and/or Meta. Only after this time has elapsed can the upgrade be locked in.

2-way Handshakes

Each upgrade to Governance will require a two way handshake, in addition to the above Delayed upgrade. This makes absolutely certain that we are passing the baton to the correct address. A two way handshake is basically a confirmation that both parties (Governance modules) have opted in to swap permissions, shown by a transaction to propose and consequently accept the new role as Governor.

Testnet dry runs

Every system upgrade will first be simulated on the Ethereum testnet to ensure that the resulting state acts as it should.

How are decisions made?

The decisions are made according to governance proposals by Meta Governors.

Where can I see the code?

Accessible on our Github and verified on Etherscan.

Got a question about the code? Check out who wrote it or talk to us directly on Discor​​d