ARCx aims to be a decentralized central bank that issues credit against assets in the DeFi space through its native stablecoin STABLEx. In this proposal, we outline our collaboration between mStable and ARCx could look like in the present and future.
In Jan 2021, we added imUSD as collateral to mint STABLEx with. The initial collaboration was a great way for the mStable and ARCx communities to build a relation and enable greater usability of mStable’s assets through the DeFi ecosystem.
In this proposal, we at ARCx, would love to have STABLEx as one of the first feeder pools with MTA incentivization enabled. Outlined below are various pathways we envision for how both communities can work together in the future:
Allowing more mAssets to be enabled as collateral on the ARCx ecosystem. This is powerful since it means that credit can be issued against assets that are otherwise unproductive.
Enabling a deeper liquidity pool between mUSD/STABLEx to allow greater leverage on certain assets such as imUSD and imBTC.
Linking into the second point, a co-incentivised liquidity campaign where users earn ARCx and MTA tokens. This will be subject to the technical complexity to make this happen. We’ve already done something similar with LIDO for StETH (Proposal: StETH as Collateral on ARCx - Lido Governance) and Badger for bLP tokens (BIP 44: Integrating bwbtcBadgerSLP & bwbtcBadgerUNI-V2 - BIP | Badger Improvement Proposals - BadgerDAO).
We’re excited to deepen our collaboration with the mStable community at ARCx and look forward to hearing the response from Meta governors and the mStable DAO itself. Me and anyone else from ARCx will be more than happy to provide more detail and clarity around the points listed above.