mStable

CDP

mStable is a one-stop shop platform that enables stablecoin swaps, yield generation and overcollateralized lending.

Risk Rating
Good
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
mStable offers its own stablecoin, lending service, and decentralized exchange, all under one seamless user experience.
What we like less
Adoption of synthetic mAssets are still limited and face uphill battle against larger competitors.
What it means for you
Offers you a decentralized exchange to trade stablecoins at a 1:1 ratio with zero price slippage as long as basket assets have not breached max weights.
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $3.7M (Rank #156)
  • TVL Ranking by CDP: #15
  • Blockchain: Ethereum, Polygon
  • Chain TVL
    • Ethereum: $3.69M
    • Polygon: $0
Risk Assessment
Good
Protocol Code Quality
  • Code reviewed by several experienced auditors including ConsenSys, CertiK and PeckShield
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of at least 4 signers, which means the protocol is less susceptible to centralization risks
  • Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
  • mStable is a one-stop shop platform that enables stablecoin swaps, yield generation and overcollateralized lending
Things to know about mStable

How mStable works

mStable is a protocol that combines stablecoins, lending and decentralized exchange all within one platform. It aims to reduce the fragmentation and lack of native yield in pegged crypto assets while providing captial loss protection through diversification and re-collateralization mechanisms. mStable achieves this through the creation of meta-assets (mAssets) that are fully backed by a diversified basket of same-peg tokenized assets (bAssets) whose weights can vary. mAssets represents both a pegged value and a share of the reserves in their respective liquidity pools. The baskets are flexible and new bAssets can be added, removed or adjusted. Currently there are two mAssets: mUSD and mBTC. mStable unites lending and zero-slippage swaps with its automated market maker (AMM) design. This allows the protocol to earn both interest rates and trading fees, which are used to generate mAsset's native yield. mStable achieves this by lending the deposited bAssets that collateralize each basket to third-party money market protocols and by enabling the same-peg bAssets to be swapped amonst each other. mAssets are minted and redeemed through users depositing and withdrawing bAssets; as such, mAssets has an ever changing circulating supply.

How mStable makes money

mStable earns revenue from multiples sources. Its AMM generates trading fees from the swapping of the underlying bAssets. These earnings arethen accrued to mAsset's native interest rates through its Save feature. The lending platform earns interest rates for lending the bAssets on third-party platforms, as well as the automatic selling of accrued token rewards.

How you make money on mStable

You can earn a portion of platform fees by depositing mUSD or mBTC into the mStable Save feature. mStable passes on 90% of all revenue, including the value of token rewards from lending platforms and swap and redemption fees generated through its platform, to users who deposit into the Save contract.