dHEDGE proposes to acquire mStable and grow it to a leading yield vault aggregator across multiple chains. mStable would become the primary source for yield vault strategies.
dHEDGE has been in contact with mStable since the early days, and would like to see mStable continue to grow.
dHEDGE would like to help mStable continue in its vision of becoming a leading yield vault aggregator. Starting with single chains, and moving to becoming a cross-chain vault protocol.
Propose that all of mStable’s current products, which are uncompetitive in yield, are migrated to ~20% APY offered by Toros Finance stable yield strategies. This would boost the mStable TVL immediately and offer better returns. The Toros Finance yield strategies can then become mStable vault strategies. (see below image)
dHEDGE would acquire the mStable Treasury as part of this acquisition.
dHEDGE would set a floor price for MTA, equal to liquid treasury (excluding MTA) at the time of the acquisition divided by the circulating supply (adjusted for unvested investor/advisor tokens), giving existing MTA holders a limited downside and unlimited upside potential.
On acquisition, mStable governance would migrate to dHEDGE governance until a new MTA governance structure is in place. A new MTA governance staking mechanism would tie MTA closer to the success of its underlying vaults. dHEDGE has already been developing this for the DHT token. Stakers would tie their MTA together with mStable vault tokens. Stakers are then rewarded based on the performance of the vaults. This would happen within 12 months.
dHEDGE wants to see the revitalisation of mStable Vaults & draw upon the mStable brand and expertise of key stakeholders.
dHEDGE proposes to acquire mStable and grow it to a leading yield vault aggregator across chains.
mStable would become the primary source for stable yield vault strategies including:
- Stablecoin LP yields
- Delta neutral yields
- Basis trading
- ETH and BTC yields
These single chain vaults can then be aggregated into a full cross-chain vault protocol, switching to best yields across chains.
dHEDGE’s automation arm, Toros Finance, has already built successful yield strategies:
These can be migrated into mStable, creating a trifecta of vault brands:
dHEDGE wants to see mStable and MTA thrive.
The proposal is to set a floor price on MTA while having unlimited upside.
dHEDGE would set the MTA floor price to:
mStable liquid treasury / MTA circulating supply
Liquid treasury excludes MTA. The circulating supply is adjusted for unvested investor/advisor tokens
The price would be locked in at the time of the acquisition and deployment of contracts. Allowing MTA holders to acquire their fair share of the treasury assets if they wish.
dHEDGE is confident that it’s able to generate revenue from new mStable vault strategies to grow mStable and MTA value well into the future.
Governance would move to dHEDGE and DHT stakers for a period of time until a new MTA governance system is in place.
dHEDGE would need expertise from key mStable core contributors and can provide salaries for key roles at mStable. Full requirements TBD.
Resources would be allocated to fast-track development of yield vaults, including building mStable as a cross-chain yield aggregator.
The dHEDGE DAO is a permissionless on-chain asset management protocol that has also created a vault automation arm; Toros Finance.
dHEDGE has been building through the bear market and is in a strong financial position with an extensive runway to realise mStable’s vision with MetaVaults.
dHEDGE and Toros have seen rapid growth especially on the Optimism network, offering some of the best yield vaults on stables and ETH, as well as enabling Synthetix stakers to hedge their SNX debt.
Bringing mStable into the dHEDGE ecosystem means that there can be better focus on yield vault strategies using both Toros and mStable expertise in the area.
The dHEDGE proposal creates a floor price for MTA holders, whilst also generating unlimited upside for both mStable and MTA, by continuing to build the protocol into a leading cross-chain yield vault aggregator.
If mStable is shut down and its liquid treasury is dispersed to MTA holders. This would give MTA holders exit liquidity at close to the current price, but there would be no upside. It would also be the end of mStable.