Guide: mStable SAVE — the Savings Account for the world

mStable guide series. This is part of a series of “how to guides” that will cover the basic mStable product suite, before getting into more advanced topics.

SAVE is mStable’s savings account for the world — giving anyone an opportunity to earn a high native interest rate on their stablecoins like mUSD in a decentralized manner with assets fully backed on-chain.

Users simply deposit mUSD into the mStable savings contract through the app and they can start earning interest accrued in real-time.

Why use SAVE?

The goal of SAVE is to implement the highest native-yielding APY on mUSD through a mix of decentralized lending of the underlying collateral and stablecoin swaps on the platform.

If you use SAVE, you can expect your savings to:

  • Generate a higher APY than the market average
  • Be backed by a diversified collateral of multiple stablecoins
  • Accrue interest in real-time and not in weeks or months
  • Deposit and withdraw without fees (except gas) at any time

High native interest rate

The yield going into SAVE comes from two sources: lending to decentralized markets and platform fees.

Lending to decentralized markets

When users deposit basket assets (bASSETS) such as USDT, USDC, TUSD and DAI to mint mUSD, these bASSETS get loaned out to various decentralized lending platforms such as Aave and Compound, which pay out interest.

Platform fees

The second source of yield from SAVE is from platform fees. Currently, mStable’s platform fees originate from SWAP, where users can swap between stablecoins at a 1:1 ratio without price slippage.

Swap fees are currently set at 0.06% of the transaction value, and all fees go into SAVE to bolster yields.

On days with high swap volumes, for example, on the 10th of October where there were US$14m of stablecoin swaps on the platform, SAVE will see a huge boost in yields.

Notice that even on normal days, the yields on SAVE tend to be much higher than the rates seen on decentralized lending platforms like Aave and Compound.

Compound’s Supply and Borrow Rates.

Aave’s Deposit and Borrow Rates

One reason for this is that not all mUSD minted will be in the SAVE contract. Some portion of circulating mUSD might be used as a medium of exchange or held in a wallet, or in other ways.

This dynamic, coupled with swap fees generated on the platform, will lead to higher yields on mUSD.

How to deposit mUSD into SAVE

To deposit their mUSD into SAVE, head over the SAVE tab on the mStable app.

  • In the Depositing section of the page, enter the amount of mUSD you’d wish to deposit into the contract
  • Note that you need to have mUSD in your wallet to do so — if you don’t have it, you can learn how to obtain mUSD in this guide
  • Approve the contract to spend your mUSD, sign the transaction, then confirm the transaction by clicking Deposit
  • You will see your deposit reflected in the savings balance once you’ve successfully deposited mUSD into SAVE

How to withdraw mUSD from SAVE

At any time you wish to withdraw your mUSD from SAVE, simply click Withdraw on the same page.

You will be able to instantly withdraw your mUSD in the SAVE contract, alongside any accrued interest without any fees or lock-ins.

Concluding thoughts

We are building SAVE to be the most flexible, highest yielding, and decentralized savings account for anyone to participate in.

We are just getting started here at mStable, and are continually thinking about ways to improve the protocol to make SAVE more composable, and to find new ways of optimizing yields. As we do so, mStable will set new standards for stablecoins, lending, and swapping.

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