Meta (MTA) Genesis on Balancer
Please note that this may contain out of date information about the state of the mStable protocol. See docs.mstable.org for up to date information.
- mStable will launch its protocol token Meta (MTA) on Balancer at approximately 14:00 UTC on Wednesday, July 15th 2020.
- The pool will be initiated with the deposit of approximately 2,666,666 MTA tokens and ~$400,000 mUSD into the new Balancer liquidity pool. The market will be mUSD/MTA. This represents an initial liquidity pool price of $0.15 mUSD/MTA, which implies a fully diluted MTA market capitalisation of US$15 million. This is the same valuation as mStable’s last investment round.
- There are multiple reasons for creating this liquidity pool: specifically, to continue to build out a distributed community of Meta Governors and to start the market that enables mStable’s re-collateralisation process (which sells MTA for mUSD to to reduce the circulating supply of mUSD in the event of a permanent loss in collateral). These MTA tokens are not an investment opportunity.
- To get mUSD, either mint it here, or buy it on these existing Balancer markets: mUSD/WETH or mUSD/USDC.
- We will be in touch via our twitter in the coming days with more specific details as we approach the date.
mStable & Meta
mStable unites pegged assets (stablecoins, tokenised bitcoin, gold, etc.), lending and swapping into one standard. Our first asset is mUSD which has seen rapid growth since launch, with over $18.5 million minted in just 5 weeks.
From day one, mStable was designed with a protocol token — Meta (MTA) — it performs several integral system functions:
- MTA is mStable’s protection: if an underlying collateral asset fails, it is the contingency value that re-collateralises the system, keeping mUSD and other mStable assets at peg (to be proposed later on);
- MTA coordinates decentralised governance. Meta stakers will ultimately vote on all system parameters; MTA will be in the hands of users who contribute to mStable assets’ utility and growth;
- MTA incentivises the bootstrapping of mStable asset liquidity, utility and a community of Governors. MTA’s possible utility as an incentive will ultimately be determined through community governance.
Governance & Community Distribution
Decentralised governance isn’t live today but is coming over the next few months which will enable MTA stakers to govern mStable. It is they who will make decisions over how the platform handles everything from fees, to basket weightings, to the addition/removal of collateral assets/mStable assets, for example.
In line with this, we feel it is important to begin the process of decentralising and distributing MTA to the broader community. In the end, our governance can only be decentralised if there is a distribution of MTA tokens amongst the community.
MTA has already been earned by hundreds of users following our recent Balancer liquidity program. This has been an extraordinary success, with mUSD<>USDC pool now the largest on Balancer. We are excited to take the next step, and release MTA to the broader public.
mUSD/MTA market for re-collateralisation
A key part of mStable is our re-collateralisation mechanism. It is what protects our system against permanent loss (say when an underlying asset loses its peg, or other black swan events). The re-collateralisation process sells MTA in an auction for the outstanding mStable asset (i.e. mUSD). The mUSD that is purchased is then taken out of circulation until there is again an equal amount of collateral to mStable assets.
This process thus relies upon deep and liquid markets for mUSD/MTA. We want to create those markets as soon as we sensibly can, so that if re-collateralisation is ever required, we have the foundations of the mechanism well-established.
Initial Balancer Liquidity Pool
Approximately 2,666,666 MTA tokens and ~$400,000 mUSD will be deposited into the new Balancer liquidity pool at approximately 14:00 UTC on July 15, 2020. The market will be mUSD/MTA. This represents an initial listing price of $0.15 mUSD/MTA — the same implied valuation from our latest investment round led recently by DACM, Three Arrows Capital and Arthur0x.
As outlined previously, mStable’s team and investors hold approximately 29% of Meta tokens. These tokens will not be liquid when the MTA liquidity pool opens, and the majority of this entitlement is locked up for vesting over the next 3 years. No one in the mStable team will have access to tokens at the time of the pool’s creation.
At present, MTA’s supply is split among the following categories:
- TGE and vested ecosystem rewards: 2.8%
- Current Investors: 12.8%
- Current Team, Advisors & Future Team: 22.5%
- Reserved for future sales & growth: 25.0%
- Ecosystem Rewards: 36.9%
MTA Circulating Supply
There will be the following amounts of MTA token supply in public circulation, at these dates:
- On day 1– c.2.8% representing the liquidity pool and unlocked ecosystem rewards
- At 3 months (October 15th) — 11.0%
- At 6 months (Jan 15th) — 18.2%
- At 12 months (July 15th 2021) — 29.3%
We have purposefully gradually emitted MTA to ensure that its supply grows with the supply growth of mStable assets. The below graph shows the total MTA emission at several timepoints:
This may change should we accept further investment or as additional people join our team, and if so, will be communicated publicly.
Note that all MTA rewards earned so far from the two Balancer pools will be unlocked at TGE (when the mUSD/MTA liquidity pool goes live on Balancer).
MTA’s Next Steps
Staking & “Proposal Farming”
For those of you with rewards already, you will be able to stake your MTA on our soon to be released EARN product (more on this in a future post), and participate in goverance.
MTA will continue to be distributed to mStable users. mUSD is just the beginning, with other mStable assets poised for launch soon!
Future mStable assets
mUSD is just the beginning. Stay tuned for mBTC, which will be released shortly, as well as future mStable assets.