Posted by a member of the mStable ProtocolDAO
In an earlier forum post it has been proposed to change mUSD from using the existing AMM with 1:1 swaps and max weights to a StableSwap implementation as is live already for mBTC. For those who supported this change (PDP17), this post is intended to serve as a forum for discussion over which USD stablecoins should be included in the new mUSD basket.
Following on from this decision, there is also a discussion to be had around the USD stablecoins which form the first mUSD feeder pools. Assets that are not included in the core mUSD basket from the suggested compositions will be automatically considered as feeder pool candidates.
mUSD Basket composition
The protocolDAO proposes 4 options for the new mUSD basket composition. This list of course is non-exhaustive, and community members should feel free to propose alternative basket compositions that they feel would be superior.
Suggested basket composition options
- USDC, DAI, sUSD
- USDC, DAI, sUSD, USDT
- USDC, DAI, USDT
- USDC, DAI
Feeder pool assets
Depending on the outcome of the mUSD basket composition discussion and vote, there will be a consequent decision regarding which USD stablecoins are used to create the first feeder pools. It should be noted that these feeder pools will be tightly integrated with mUSD and the UI, so users will effectively be able to “mint” mUSD with these feeder pool assets at 0% fee - the difference being that these assets will not affect the risk profile of the mUSD (which will be composed from the selections above). Current feeder pool USD stablecoins suggested by the ProtocolDAO for consideration by MTA token holders include:
As with PDP17, should this proposal not be subject to material change, it will be taken to snapshot vote in 24 hours. Voting will be open for a 5 day window to give adequate time for a concurrent discussion. Voters in this window can change their preferences on the mStable snapshot page. We look forward to discussing these proposed changes with MTA holders!