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👋 Welcome to mStable's docs. This is a live document that will be updated as mStable evolves. Currently, we aim to provide a high level overview of the protocol and its components. |
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The mStable Standard is a protocol that makes stablecoins and other tokenized assets easy, robust and profitable.
Three major problems confront stablecoin users:
- significant fragmentation in same-peg assets
- lack of native yield when it is being increasingly demanded by users
- lack of insurance against permanent capital loss
Our products (SWAP, SAVE and EARN) are built specifically to address these pain-points.
mStable assets represent some underlying value peg and are minted/redeemed on-chain via smart contracts. mASSETS are backed 1:1 by a basket of existing tokenised same-base assets (hereafter bASSETS).
Each mASSET is a liquidity share for its asset pool as well as a medium of exchange, unit of account and store of value in its own right.
Each mASSET has an outsized native interest rate that is derived from lending bASSETS on third party lending protocols combined with fees collected from mStable's SWAP product.
Users can swap between bASSETS with zero price slippage, regardless of order size. For example, in mUSD, uses are able to swap 1 DAI for 1 USDC at no cost, except gas and a small fee.
The protocol token Meta (MTA) serves as insurance against permanent loss for all mASSETS. The token receives a percentage of all system revenue in compensation. In order to achieve long-term value of Meta, holders are motivated to seek stability through the diversification and growth of the system.
- Easy - mStable is a one-stop solution for stablecoin users.
- Robust - Collateral is diversified, exterior to the system and ultimately insured by Meta.
- Stable - mStable's liquidity shares are tokenized assets in their own right.
- Decentralized - Meta embeds the incentives required to govern a decentralized system. Meta holders are paid when mStable grows securely.
- Built for Rapid Scaling - 25% of Meta is emitted in a bootstrapping rewards pool.
- Yield and Return
- mASSETS earn an outsized yield (interest + swap fees). See SAVE.
- mStable is built so that those that use it or contribute to its growth are rewarded for doing so. See Meta Rewards.
- Traders & Arbitrageurs
- Significant arbitrage opportunities will exist on the mStable Zero Slippage Swap. See SWAP.
- Stablecoin Users
- mStable issues assets that are more secure than the sum of their parts. Each mASSET diversifies risk between different asset issuers and stability mechanisms. The system itself is effectively __over-collateralised due to each mASSET being ultimately backed by Meta. See EARN.
- SDK Integrations
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dApps: mStable increases a dApp's user base while increasing usability. mStable allows dApps to accept several assets while presenting them in a more secure and user friendly way. For example, with the mStable SDK, a dApp could accept USDC, DAI, TUSD, USDT, GUSD, USDx, CUSD and present the USD asset simply as USD.
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Futures exchanges: instead of using a single stablecoin as the contract's basis, accept and settle in multiple. Decrease the possibility of mass liquidations due to a stablecoin peg loss
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Spot exchanges: unite stablecoin liquidity into one pair: BTC/USD rather than BTC/USDT, BTC/USDC etc.
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Participating dApps and exchanges receive Meta.
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{% hint style="success" %} Now you've got the high level! Time to dig a little deeper. {% endhint %}