Kriptoks

mStable-USD (mUSD) is an innovative non-custodial and self-governing stablecoin infrastructure that provides a solid foundation for the development of DeFi applications and the creation of meta-assets. These meta-assets are fully backed by a diverse basket of existing tokenized assets that share the same base currency, making them a reliable and stable investment option for DeFi users.

Unlike custodial stablecoins, mUSD is a non-custodial token, which means that the private key to the wallet is completely controlled by the owner without the need for a third party. Each meta-asset is a crypto asset with a pegged value that represents a liquidity share in the underlying asset pool. These assets can be minted or redeemed on-chain via the non-custodial mStable smart contracts. The smart contracts, which run in the form of protocols on the blockchain, allow underlying assets to be exchanged or swapped for a fee.

One of the main problems that mStable aims to solve is the significant fragmentation of same-peg crypto assets. The lack of yield in pegged crypto assets and traditional currencies, and the absence of protection against permanent capital loss in pegged crypto assets are other issues that mStable addresses.

The mStable assets are designed to generate a native yield for users who deposit mBTC or mUSD into mStable's Save Contract. mUSD is the first meta-asset introduced by mStable and is composed of USD stablecoin assets. On the other hand, mBTC is a crypto asset pegged to BTC price and backed by a tokenized BTC pool on the Ethereum network. The Save Contract is mStable's non-custodial savings account that provides an accessible and reliable way for users to earn yield on their pegged-value crypto assets.

When users deposit their mUSD or mBTC assets into the Save Contract, they earn yield and receive a yield-bearing imUSD or imBTC token. These tokens only appreciate over time and do not have a one-to-one relationship with the underlying peg's value. They can be redeemed for the underlying mBTC or mUSD at any time, resulting in the user receiving the accrued yield along with the original deposit.

mUSD has multiple utilities in the DeFi ecosystem. It can serve as a store of value, a unit of account, or a medium of exchange. mUSD can also provide liquidity in mStable's feeder pools to earn swap fees. These feeder pools are liquidity pools composed of 50% mUSD or mBTC and 50% another asset that shares the same peg. Depositing mUSD into the mStable Save Contract also allows users to receive yield-bearing imUSD, which can be used to earn MTA rewards by depositing into the mStable vault. In a vault, savers can store imBTC or imUSD to earn MTA rewards. The mStable protocol is governed by the native governance token, MTA.

MTA has several utilities in the mStable ecosystem as a governance token. It can be used for liquidity mining to bootstrap a decentralized community of governors. It can also be staked to earn staking rewards and boosted rewards across the protocol to incentivize long-term holders. MTA governors can vote on the direction of the protocol, parameters, and funding by staking. The mStable protocol uses value accrual mechanisms to drive value to MTA as the protocol grows.

James Simpson is the co-founder of the mStable platform, which was launched in 2020. Since then, mStable has emerged as a popular and reliable option for DeFi users who are looking for a stable and secure investment option.

In conclusion, mStable-USD (mUSD) is a noncustodial and self-governing stablecoin infrastructure that addresses the problems of significant fragmentation in same-peg crypto assets, lack of yield in pegged crypto assets and traditional currencies, and no protection against permanent capital loss in pegged crypto assets. By providing a base layer collateral protocol to develop DeFi applications and the creation of meta-assets, mStable allows users to earn yield on their deposits through its Save Contract, and also provides liquidity with the mUSD in mStable's feeder pools to earn swap fees. Additionally, the protocol is governed by the native governance token, MTA, which can be used for liquidity mining, staking rewards, and boosted rewards to incentivize long-term holders. The value accrual mechanisms used by mStable drive value to MTA as the protocol grows.