Hello and welcome to this blog post about mStable USD MUSD White Paper. I am very excited to know that you are interested in this amazing technology, you will be going to amazed by the incredible potential of the blockchain.
There is a lot to learn about this futuristic tech, lets get started to dive into the mStable USD MUSD white paper and start to leverage it to build a more secure and trusted ecosystem for Industry 4.0 applications.
The aim of this blog post is to help you quickly understand about the philosophy behind the mStable USD (MUSD).
I can ensue you that, you will be able to understand every bits and pieces related to mStable USD (MUSD) after going through the mStable USD MUSD white paper.
Without wasting any further time lets get started to dive right in and lets understand white paper first.
What is white paper?
A white paper is an informational, influential, well-structured document, usually published by an organization, to provide in-depth information about a specific solution.
A white paper is used to provide a good insight into the challenges for a specific problem and a proposed solution for the same.
mStable USD MUSD White Paper
mStable USD MUSD white paper will be going to provide you, all the information that is needed to get started with mStable USD (MUSD), including the inspiration for creating, the problem it is trying to solve and the solution proposed by mStable USD MUSD white paper.
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mStable is an autonomous and non-custodial infrastructure for pegged-value crypto assets.
It is built on Ethereum and Polygon. mStable assets (mAssets) are built to an autonomous and non-custodial pegged asset layer for Decentralised Finance (DeFi).
mStable was created to address three major problems that confront pegged crypto asset users:
- significant fragmentation in same-peg crypto assets (there are currently over 5 major USD pegged crypto assets on Ethereum for example)
- lack of yield in fiat currencies and pegged crypto assets
- lack of protection against permanent capital loss in pegged crypto assets
mAssets represent some underlying value peg and are minted/redeemed on-chain via smart contracts.
A user minting an mAsset interacts only with the mStable contracts, which are non-custodial. This means that no third party ever takes custody of a user’s assets. In other words, mStable is a “peer to pool” protocol, where the pool “lives” in a non-custodial smart contract.
mAssets are fully backed by a basket of existing tokenised same-base assets (hereafter bAssets).
Each mAsset represents a share of liquidity in that mAsset’s pool as well as a pegged crypto asset in its own right. A mAsset can be used as a medium of exchange, unit of account and store of value.
Each mAsset should produce an outsized native interest rate (although this of course is never guaranteed). This rate is derived from the mStable contracts autonomously and programatically lending bAssets to third party lending protocols, generating interest income. The mStable contracts simultaneously allow for bAssets to be exchanged or “swapped” for a fee. All interest and exchange income is automatically and programmatically sent to mAsset savers.
The mStable protocol is governed by Meta (
MTA) Governors. Those who have the
MTA token can stake (i.e. deposit in a governance smart contract) their tokens to become protocol governors, allowing them to govern the mStable protocol.
Every participant who interacts with mStable has the option to earn
MTA, either through contributing to its utility (through Earn) or by saving a mAsset (through Save).
MTA is emitted in this way to facilitate decentralised, collective and user-driven governance.
White Paper Link: mStable USD MUSD White Paper
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