Due to popular demand and a very fruitful discussion in our Discord, we would like to bring this idea to the forum for a more formal discussion.
Initially, mStable launched with one mAsset (mUSD). Earlier this year, a second mAsset (mBTC) was added with a guarded launch.
Recently the idea of adding a third mAsset was discussed in the discord. That third asset being mETH.
ETH is an interesting asset for various reasons:
- It powers the Ethereum network so everyone using the network has to have some ETH, usually more than is immediately needed.
- It is popular as a store of value and/or is an investment into the future of the Ethereum network.
- More than 20% of the ETH is being utilized in smart contracts, showing that it is popular to use it in DeFi but still has a big untapped userbase and liquidity.
- Holding ETH alone does not generate a return in ETH. Other products that earn a yield exist but either introduce complexity or risk to the user.
- Would the addition of mETH be beneficial for mStable?
- Would mETH add value to potential holders?
- What assets should we consider for the mETH basket?
- What underlying risks do these assets have?
The initial response in the discord was positive. However, we need to allow the whole community to voice their opinion.
This post is just to start a discussion in our forum.
Please let us know what do you think.