What The Fuck Is..... mStable
Numerous projects are looking to enhance the implementation of cryptos by linking them to conventional financial systems. For starters, stablecoins have been mainly created to do this. The crypto community has come up with a way to make fiat currencies’ digital asset representation.
However, even with the recent advancements surrounding stablecoins, there is still a concern. You must be wondering what this is? The assets that generally back the number of stablecoins as of now are not that secure as they’re supposed to be.
Fortunately, Meta mStable can address this issue. Use this article as your guide to Meta mStable. Get to learn everything you need to know.
Let's dive in.
What Is Meta / mStable?
Meta mStable is a decentralized finance (DeFi) protocol that has been recently launched and focuses on streamlining the implementation of stablecoins in a unified ecosystem that it looks to create. Above all, it aims not to compromise effectiveness and safety.
What’s more, it adopts a permissionless network such that its operations are primarily user-incentivized. Its governance token, also known as the Meta (MUSD), allows users to be part of how that system is managed. This includes its governance and security.
Meta became quite prominent in DeFi recently because of its guarantee of profit to investors, along with its solution to the problems that most stablecoins experience.
What Makes Meta Exciting?
Let’s get to the exciting bit about mStable. There are a few things that make it different, important, and exciting to users. Keep reading
Earn Meta for Participating in mStable’s Development
By leveraging reward mechanisms as well as its swap fees and native interest rate, Meta aims to secure a substantial profit for mStable’s userbase. Undoubtedly, early contributors to the utility and liquidity of mStable will be substantially rewarded.
A huge Meta percentage has been assigned to an open reward pool for this reason. The team hopes that this will significantly grow mStable’s liquidity and a wider base of Meta holders. These are two mission-vital components for the success of mStable.
The ecosystem rewards focus on incentivizing users to contribute mStable assets to the entire DeFi ecosystem and allow widespread distribution of Meta Governors.
Additionally, Meta will be paid to people that “lock up” their mStable assets in certain utility generating services, including lending protocols and liquidity (e.g., DEXs). The reward pool is always open to everyone. No matter if you are one of their corporate liquidity partners or you are an individual partner, you can also claim some of this reward pool on similar terms.
The other exciting thing about mStable is that it is a product that may be incorporated into any exchange or application. mStable basically unites tokenized assets when it comes to end-users. So, how does it work? Here's a breakdown.
1. User can deposit any whitelisted asset on that application.
2. The deposit is minted into a mStable asset. 1:1 backed, 0% slippage, 60k gas.
3. mStable is then visible in the user’s account as “USD”
4. Users may redeem their asset into off-board with the mStable asset or any underlying asset
For instance, there would be one BTC/ USD contract on a futures exchange. The exchange may accept a majority of stablecoins that tend to flow into one contract. This simplifies the user experience and increases the participating exchange’s market depth. This would occur while enhancing stability and security via mStable’s diversification of native and collateral re-collateralization mechanism.
It is specifically powerful when it comes to DeFi apps that generally have been reticent to incorporate USDT due to risk but still need to tap its significant user base.
Are you an exchange/ DApp that needs to simplify the overall user experience by having a single USD for all the services? Just get in touch with them through their Discord.
The mStable Token & Governance Model
Meta (or MTA) is simply mStable’s native protocol token that serves three major functions:
- To coordinate governance
- To act as the source of re-collateralization
- Incentivizing the bootstrapping of mASSET utility, liquidity, as well as a community of Governors
Re-collateralization is basically the mechanism that secures mASSETS within the mStable protocol whenever a bASSET loses its peg. In order to work, MTA is usually deposited into the mASSET contract to allow over-collateralizing of the mASSET.
In case a bASSET loses its peg, then mStable governors will vote to eliminate the bASSET from the basket. Afterward, the MTA in the contract is sold for the appropriate mASSET and the bought mASSETS are then burned until that mASSET’s remaining pool becomes equal to the remaining part of the basket, while the system becomes re-collateralized. The mechanism is expected to launch when it comes to mStable Phase 2.
The mStable ecosystem consists of governors that are also MTA holders with skin in the game, which means they can be trusted to set and maintain system risk parameters. More so, MTA holders should stake their token for acting as a governor. They’ll get a percentage of bASSET interest, redemption fees, and swap as a result. What’s more, governors can vote on protocol proposals that incorporate various things, such as:
- Addition & removal of mASSETS
- Addition & removal of bASSETS
- Selection of oracles
- Redemption and minting fees
- Upgradability of system modules, which includes governance and re-collateralization
To incentivize the bootstrapping of liquidity, minting, and utility of assets, Meta mStable has assigned 20,000,000 MTA to an open reward pool. Besides, this pool may be tapped into by users that tend to lock their mASSETS in utility-earning DeFi services such as lending pools and liquidity, as well as applications that incorporate the mStable assets or mStable SDK. These rewards are usually paid out every month and will increase in the first 15 months in mStable before gradually declining until the pool becomes exhausted.
Who Is On the Meta Team?
The original idea for Meta came at the start of 2019 and it took nearly 18 months from this moment to when the contracts were being deployed to Ethereum mainnet at the end of May 2020. And according to the team, DeFi had not become the major thematic that it is nowadays when they were starting to build mStable. Maker was the only visible and well-recognized “DeFi” project. Yield farming was still non-existent, AMMs were in their infancy, and the stablecoin landscape was primarily USDT.
When it comes to security, the development team at mStable has always devoted themselves to ensuring that you get the best level of contract security. Of course, perfect security will never be possible. However, the mStable team has always prioritized doing everything it can to the best standard. It has included a generous bug bounty program and regular audits.
Undoubtedly, much has gone into developing mStable and getting them where they are right now, and there is still a lot that needs to be done.
What Venture Capital Firms Fund Meta?
Many parties have supported Meta with their capital. Some of these organizations include Digital Asset Capital Management in Australia, Alameda Research in Hong Kong, Three Arrows Capital in Singapore, and Defiance Capital in Singapore.
How to Participate in the Meta Network
All you’ll need is to find an exchange that allows both cryptocurrency and fiat to simplify purchasing mStable Governance Token (also known as Meta). Below is a breakdown of a few steps you will need to follow.
- Open an account on any exchange that allows MTA. Don’t forget that many exchanges request a phone number, proof of ID, and an email address to register.
- Deposit money into your account. You can fund your account through a bank transfer, deposit cryptocurrency from your crypto wallet, or pay with a debit or credit card to purchase mStable Governance Token, Meta.
- Purchase mStable governance token. This is definitely the last step. Purchase Meta and then find the ideal wallet to keep MTA.
What about selling mStable governance token? You could easily cash out the MTA with a similar exchange you purchased it through:
- Signing in to the exchange you got MTA on. In case you keep your governance token in a digital wallet, ensure to compare different crypto exchanges.
- Place a sell order. Select the amount of MTA you would want to sell.
- Finish your transaction. After confirming the selling cost and fees, close your sale of Meta.
mStable, the Bottom Line
Undoubtedly, every DeFi user thinks of black swan events one time or another. This idea can be supported by the massive liquidation of DAI when ETHC dropped in value recently. What's more, dForce hacking contributed to the concerns of crypto users.
In case the DeFi community is looking to return the belief of the crypto-space when it comes to DeFi innovations, then the accomplishment of mStable may be the beginning. mStable’s aim to designing a system that lowers the risk of liquidations might be the only way to renew everyone’s faith in DeFi.