mStable USD Defi Coin is a collection of autonomous, decentralised, and non-custodial smart contracts. It is built on Ethereum. mStable assets (hereafter mAssets) represent some underlying value peg and are minted/redeemed on-chain via smart contracts.
A user minting an mAsset interacts only with the mStable contracts, which are non-custodial. This means that no third party ever takes custody of a user’s assets. In other words, mStable is a “peer to pool” protocol, where the pool of deposited stablecoins “live” in a non-custodial smart contracts.
mStable USD Defi Coin are fully backed by a basket of existing stablecoins (hereafter bAssets). Each mAsset represents a share of liquidity in that mAsset’s basket as well as a stablecoin in its own right. A mAsset can be used as a medium of exchange, unit of account and store of value.
Each mAsset is designed to produce an above-average native interest rate (although this of course is never guaranteed). This rate is derived from the mStable contracts autonomously and programatically lending bAssets to third party lending protocols, generating interest income. The mStable contracts simultaneously allow for Assets to be exchanged or “swapped” for a fee. All interest and exchange income is automatically and programmatically sent to mAsset savers.
Interacting with the mStable protocol is permissionless and non-custodial. Anyone can build a service to capitalize on the composibility offered through mStable’s smart contracts.
How can I access the mStable protocol?
The protocol exists as open-access smart contracts on the Ethereum blockchain, meaning interacting with the protocol is permissionless – anyone can build a dApp layer or communicate directly with the blockchain to access the mStable protocol.
One such app is the mStable App: a slim, user focussed web application that allows users to:
MINT and redeem mAssets, allowing you to convert bAssets into mAssets for free
EARN rewards for contributing to the growth of mStable
It is possible, but not recommended to communicate directly through a Wallet provider (e.g. Metamask, MyCrypto). Doing so means writing your own transaction, which is something you should avoid doing.
An open & decentralised ecosystem
mStable is governed by MTA holders who have staked their tokens to vote on proposals. mStable’s governance goes through a process where consensus is reached in progressively concrete stages. Proposals and ideas are surfaced on the Discord or public forum, and are finalised by on-chain signalling by MTA holders.
mStable USD Defi Coin Assets (mAssets) are built to an autonomous and non-custodial stablecoin layer for DeFi. The first mAsset, mUSD, comprises of USDT, TUSD, DAI, sUSD and USDC. mAssets can be minted with any of the underlying and used as a trustworthy base layer with which one could, for example, collateralise synthetic assets or loans.
mAssets produce a native yield through the SAVE contract. Yield is derived from AMM swap trades, lending markets, and other income sources. Underlying assets can be redeemed at any time.
Who Are the Founders of mStable?
mStable was founded by James Simpson and Henrik Andersson, who met while at Apollo Capital. After working hands-on with several stablecoins and lending platforms, they began work to unite lending, swapping and saving into a single standard and attempt to solve various points of friction existing stablecoin users encounter. This project became mStable, with a genesis team of 9 people and a community of thousands lending their voice and votes to govern the protocol via decentralized governance.
What Makes mStable USD (mUSD) Unique?
mStable USD Defi Coin is a representation of its underlying stablecoins, making it a more abstracted and secure representation of USD on chain. It can be minted and redeemed permissionlessly via the mStable smart contracts using any whitelisted USD-pegged stablecoin. mUSD is also unique because it offers some of the best risk adjusted saving APYs in DeFi. This APY comes from multiple sources, drawing from swap fees, lending income, and liquidated tokens farmed by the mStable contracts. mStable is governed by a diverse community of stakeholders , all of whom come together to provide ideas, comments, and vote on proposals aimed toward improving the mStable protocol.
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