mStable Frequently Asked Questions

mStable


What is mStable?

mStable is a protocol that unites stablecoins, lending and swapping into one robust and easy to use standard.

mStable is:

  • A savings account for the world
  • A deep liquidity pool for efficient and low slippage stablecoin exchange
  • A base layer collateral protocol on which an immense quantity of DeFi applications can be built
  • A meta-asset platform that creates assets that are stronger than the sum of their parts
  • Open and available to everyone
  • Decentralised: the governance of the protocol will be driven by MTA holders

Why build mStable?

  • Significant fragmentation in same-peg assets (e.g. USDT, USDC, DAI, PAX)
  • Lack of native yield when it is being increasingly demanded by users
  • Protection against complete capital loss and concentrated counter-party risks

How is mStable solving this problem?

  • mStable is more usable, stable, and secure than the sum of its parts. It is built on Ethereum and based on a sustainable and decentralised protocol
  • It increases liquidity by pooling participants from different asset markets together
  • It improves safety by diversifying risk across different pegging mechanisms and introducing security of value via recollateralisation
  • It also reduces congestion by inviting liquidity into the system with incentives

Who is building mStable?

  • mStable is built by Stability Labs, a software development company that is driven to make finance safe, secure and transparent. Our dev team is based in Berlin, and the team is based in Germany, Australia, New Zealand, Singapore, and Hong Kong

mASSET

What are mASSETs?

  • mStable assets are a liquidity provider (LP) share in a dynamic pool of assets that generates native yield
  • Each mASSET is backed by a basket of existing whitelisted tokenised assets of that same peg

How do mASSETs generate yield?

  • Yield is generated from mStable SWAP fees and income from lending collateral on Compound and Aave

How are mASSETS minted or redeemed?

  • mASSETS are minted/redeemed permissionlessly and on-chain via smart contracts.

What are some possible future mASSETs?

  • Possible future mASSETs include mBTC, mGLD, mEUR, mGBP

mUSD

How do I get mUSD?

  • You can mint new mUSD by depositing a 1:1 ratio of USDT, USDC, TUSD or DAI into mStable. This pool of assets can be expanded or reduced through governance.
  • You can also buy mUSD on open markets and DEXs such as Balancer

Is there a limit to how much mUSD I can mint?

  • mStable has set maximum weights for the basket assets in each basket, which prevents a basket from becoming unbalanced with too much of one asset.
  • You can mint as much mUSD as long as these maximum weights are not breached

Why are such limits important?

  • These limits keep mUSD at peg and act as a safety measure to keep mUSD collateralized in the event that one of the underlying assets’ value loses its peg.

Can the limits to the maximum weight be changed?

  • The maximum weight can be adjusted through mStable’s governance system in response to new information or changing market conditions.

Can I multi-mint mUSD by sending multiple assets at the same time?

  • Yes, you can multi-mint mUSD as long as the maximum weights of the basket aren’t breached.

Can I mint mUSD using other crypto assets like ETH?

  • This functionality is a work in progress.

What does minting cost?

  • Minting costs nothing but gas, it is an immediate 1:1 (zero slippage) conversion

Why bother using mUSD for stablecoins?

  • mUSD extends the functionality of existing stablecoins while mitigating risk for holders.

How do I convert mUSD back to other stablecoins?

  • You can redeem in the mStable app or swap via liquidity pools such as Balancer or Curve

What are the fees for app redemption?

  • 0.06% for single bAsset redemption and 0.03% for multi bAsset redemption.

SAVE

How does mStable provide a higher yield for stablecoins?

  • mUSD’s underlying assets (e.g. USDT, USDC, TUSD and DAI) are lent on decentralised lending markets (Compound and AAVE)
  • Swap fees generated on mStable go directly to savers
  • The two combined means mStable will generate a higher than average yield when compared to a passive investment in lending markets

Which lending markets are used?

  • At present, mStable utilizes Compound and AAVE
  • DAI and USDC are sent to Compound and USDT and TUSD are sent to AAVE

Can the lending markets be changed?

  • Governors can vote to include new or higher-yielding platforms or remove platforms no longer deemed safe or sufficiently profitable

What is the advantage of mStable SAVE over directly lending in lending markets?

  • mStable abstracts the complexity of using decentralised lending markets
  • There’s no need to find the best rate, deal with lending tokens, or work out how to navigate complex UIs
  • mUSD is also backed by a diversity of collateral assets, multiple lending protocols and includes security mechanisms designed to protect user’s capital against complete loss

How does the SAVE contract accrue interest?

  • As the mUSD basket accrues value from decentralised lending markets and swap fees, new mUSD is printed and sent to the SAVE contract, and divided proportionally to savers

Am I receiving additional mUSD tokens or is there a proxy token issued?

  • There is an internal proxy token that is used to accrue interest. We call this a ‘SavingsCredit’ and it’s nontransferrable for now, and it’s essentially a LP token of the SavingsPool.

How can one see how many LP tokens one has?

{
  creditBalances(where: {account:"<my account lower case>"}){
    amount
  }
}

The SAVE UI is down and I can’t see my balances, are my funds gone?


EARN

What is EARN?

  • EARN consolidates all of mStable’s incentivised liquidity pools into one place, and lets anyone track their Meta ecosystem rewards in real-time.

How are Meta rewards distributed?

  • Ecosystem rewards are distributed to users contributing to these pools at a rate proportionate to their share of the pool, and the rewards made available to the pool

What is the goal of providing liquidity?

  • The goal is to increase the utility of mStable assets and to grow the ecosystem

How can I earn ecosystem rewards?

  • Contribute liquidity to one of the Curve, Balancer or Uniswap pools available on EARN by adding collateral to it on the platform it is run on, and staking the staking token (e.g. BPT or UNI-V2) on the pool page of EARN.
  • You must stake the LP tokens into EARN to accrue ecosystem rewards

How do I join a Balancer pool?

  • Firstly go to the Balancer pool you want to contribute to on EARN, and then open up the link to Balancer on the pool card at the top.This guide provides detailed instructions for how to contribute liquidity to a Balancer pool.

How do I join a Uniswap pool?

  • Firstly go to the Uniswap pool you want to contribute to on EARN, and then open up the link to Uniswap on the pool card at the top.This guide provides detailed instructions for how to contribute liquidity to a Uniswap pool.

Is the APY number a compounded figure?

  • No, as the rewards are not automatically staked

Where can I get BPT or UNI-V2 to stake funds in these pools?

  • As above, you would need to contribute liquidity to Balancer or Uniswap and deposit the appropriate tokens that qualify for rewards to get back BPT or UNI-V2.

Is there a limit to how much liquidity I can provide to Uniswap or Balancer?

  • No

Do we get a share of fees in the Uniswap pool when providing liquidity via EARN?

  • Yes, the Uniswap trading fees accrue in the liquidity pool so the pool grows over time
  • The Uniswap LP tokens can then be used to redeem your share of the liquidity pool that has grown since you added liquidity

Do we collect the full Uniswap liquidity pool fees in addition to the MTA earn reward?

  • Uniswap fees just go back to the pool, your LP tokens are collecting the fee

Where can I get more support for Balancer/Uniswap related questions?

  • You can check out their support channels in their Discord channels

When do I get my rewards?

  • As long as there are rewards available in the pool, and you have staked tokens in the pool, rewards will be earned in real-time. These rewards can be claimed at any time using the CLAIM button and sent to your wallet.

How is the BAL reward calculated?

  • It is calculated based on your proportionate share of MTA accrued in the week and the amount of BAL airdropped to the EARN pool

Where can I claim my BAL rewards?

  • You can claim BAL rewards on the EARN dashboard (in Green!)

Is there an airdrop for BAL tokens?

  • No, there is no longer an airdrop for BAL tokens. You have to claim BAL rewards on the EARN dashboard.

Can I wait for several weeks before claiming my BAL rewards?

  • Yes, you can, the rewards will accumulate.

When are new rewards made available?

  • New rewards are being made available on a weekly basis for currently running pools.

How do I know what are the planned rewards for the upcoming week?

  • Check the announcements channel in Discord.

Are the rewards in EARN pools fixed?

  • Rewards may vary according to market conditions, community feedback and goals from EARN

What’s the best pool to join?

This depends on a number of factors:

  • Total collateral value (smaller pools may present a better opportunity, but this depends on the rewards available)
  • APY/ROI of the pool
  • Your available collateral
  • Impermanent loss (stablecoin-only pools inherently present less risk than those with volatile tokens)

Is X pool or Y pool better?

  • As above, there are various factors that might impact your decision when it comes to contributing to the pool.

What is impermanent loss?

Do I need to pay any fees?

  • There are no fees (excluding gas) for interacting with EARN.

Why am I not seeing my share of the pool in Balancer after joining EARN?

  • When staking, your Balancer Pool Token (BPT) is deposited into a staking rewards contract so that it can be locked while rewards are earned and distributed. Exiting the pool will return this token, and your share will then be shown in Balancer.

How do I exit a pool and get my tokens back?

  • Simply click on the ‘EXIT’ tab on the pool and send the transaction; this will return your staked tokens from the pool, and claim any earned rewards to your wallet.
  • At this point in time, exiting the pool will not transfer BAL

Are there plans to simplify the claim process? Like a claim all button?

  • The team is aware of this feedback and while combining them might save a small amount of gas (~60-80k gas), and something the team is keen to implement for UX purposes, unfortunately, most of the gas cost comes from inside the individual EARN contracts

Can we add another pool or remove a pool from this program?

  • You can raise your feedback in the #earn-pool-rewards channel in Discord to get the community’s views

Is that a whale having 98% ownership of the pool?

  • That’s probably the smart contract of the particular EARN pool

Staking

What’s the role of staking in mStable?

  • Staking serves two broad functions in the mStable ecosystem - recollateralisation and governance

Can you explain more about staking for governance?

  • Our users should be rewarded for participating in governance over the mStable platform and for sound decision-making for the long-term success of the platform

Why incentivize long participation?

  • Our intention from the beginning has been to build a group of long term focused, informed users, to begin making decisions over how mStable functions.

What’s recollateralization?

  • As detailed in our documentation, staked MTA that will first be liquidated in the event of a peg loss to begin the process of basket recollateralisation.
  • A a specific % of staked MTA will be liquidated, this amount can also be changed by the community governing the protocol in future.

When can I stake MTA?

  • You can now stake your MTA to participate in governance
  • Head over to the staking tab on the Governance app to stake

How will staking be implemented?

  • Staking will be implemented in two phases, given the community’s interest in seeing staking sooner
  • The V1 staking contract will not have recollateralisation while the V2 does
  • The migration from V1 to V2 will require users to move their funds manually

How is the reward for staking calculated?

  • The reward for staking is calculated based on a formula
  • Earning_weight = ((stake / seconds_in_year)*10000) * sqrt(lockup_in_seconds) where stake is the exact amount of units locked up (1 MTA = 1e18).

Is the APY for staking fixed?

  • No, the APY that is seen on the staking page is a variable that fluctuates depending on the amount of MTA staked. As more stakers stake their MTA, the APY should fall as the rewards are shared with a larger pool of stakers

Can I increase my staked amount after staking


Security and Risks

What is the team doing to ensure protocol security?

  • The mStable team is committed to ensuring the highest security levels on the protocol through a multi-faceted approach, from documentation and full unit and integration testing procedures to bug bounties and auditing.

Is the protocol audited?

What is the bug bounty program?

  • Hackers who can find smart contract vulnerabilities in our system that can lead to loss of collateral, unfair payouts or locked components will be rewarded, subject to bug bounty rules.

How much is the bug bounty?

  • The rewards will be awarded at the sole discretion of the mStable team, based on various factors such as the quality of the report and reproduction instructions.
  • The reward will be based on the following severity scheme, based on the OWASP risk rating methodology


Governance

Is mStable decentralized?

  • mStable is committed to creating an open protocol for everyone. The governance of the protocol is by Meta (MTA) holders.

What is Meta/MTA?

  • MTA is mStable’s protocol token, which will have three core functions:
    To act as the ultimate source of re-collateralisation (insurance)
    To coordinate decentralised governance
    To incentivise the bootstrapping of mStable asset liquidity, utility and a community of Governors
  • Currently, only the third function is live

What is the total supply of MTA?

  • The total supply of MTA is 100 million

Why is it important for mStable to be decentralized?

  • Robust governance includes a large and decentralised stakeholder-base where mStable will be controlled not by a single entity but by a global community of Meta Governors

What are the benefits of governing?

  • Meta Governors may stake Meta and vote on proposals to change system parameters, and in the future may receive a portion of mStable’s revenue proportionate to their stake amount

How do MTA holders govern the platform?

  • To participate in governance, users must stake Meta and vote on proposals
  • Governors of the mStable protocol can update parameters of the system - for example changing platform fees, assigning rewards, changing bASSET maximum weights or introducing new mASSETS or bASSETS to the system.

Is staking risk-free?

  • No, a portion of staked Meta is the first source of re-collateralization value, in the event of a bASSET failure. You can read more about this in our docs.

How are Meta holders incentivized to governed the platform?

  • Meta Governors will make all system decisions. If they make the wrong decisions, they should be the hardest hit. If they make good decisions, they should be rewarded the most
  • These tight incentives direct Meta revenue directly to those who have the chosen to take the most responsibility and risk in the system

Where can I find out more about team and investor MTA emissions?

  • MTA allocations and vesting can all be viewed in this public document. It shows total MTA supply broken down by category, and the emission schedule for investors, advisors, and team members over the next 4 years.

How are the MTA rewards distributed?

  • 20,000,000 MTA (20% of MTA’s total supply) will be emitted via ecosystem rewards to directly incentivise those that provide resources to bootstrap the minting of mStable assets, and to fund their liquidity and utility. Check out EARN to learn more
  • 10,000,000 MTA (10% of MTA’s total supply) will be rewarded to MTA stakers in return for governance decisions and participation in the recollateralisation mechanism
  • Ecosystem rewards began on 26 June 2020 and will last for 5 years
  • The granular details of these reward emissions may be altered over time

What are some examples of ecosystems?

  • dApps, exchanges, or applications that integrate the mStable SDK or mStable assets
  • Users that ‘lock-up’ their mASSET in utility generating DeFi services, such as liquidity and lending pools.

Resources:

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