mStable Acquisition Completed by dHEDGE: The Next Chapter of DeFi Yield Vaults Begins
Introduction:
We are delighted to announce that mStable has been acquired by dHEDGE, a decentralized asset management platform. This strategic acquisition marks a significant milestone for mStable, positioning us to become a leading yield vault aggregator across multiple chains and broaden our reach within the DeFi ecosystem. Furthermore, we are thrilled to reveal our roadmap for the future, encompassing several key initiatives aimed at enhancing the user experience and fostering adoption.
In the coming weeks, mStable will introduce three new yield products on Optimism: Ethereum Yield, Stablecoin Yield, and Delta Neutral Yield. These offerings will deliver competitive yield options for users while taking advantage of the Optimism network’s benefits, such as reduced gas fees.
Additionally, we have recently bridged MTA to Optimism and initiated a new incentives program with Velodrome to deepen MTA liquidity.
Moreover, we are developing the Meta-vault’s relaunch, which will aggregate yields from multiple yield vault strategies, and a cross-chain Meta-vault capable of aggregating the best yields across any chain.
We are also working on a revolutionary DeFi product: a flatcoin that represents a low-risk, decentralized stable asset that not only appreciates in value over time but also effectively hedges against inflation.
The flatcoin will be backed on-chain without exposure to off-chain USD assets and will offer capital efficiency by being fully backed but not over-collateralized, achieving an ideal balance for a stable and growing asset.
We are confident that dHEDGE’s acquisition of mStable will establish us as a pioneer in the future of DeFi and yield vaults. In this blog post, we will delve deeper into the acquisition, its benefits, and the implications for the MTA token, mStable, and its users.
Acquisition Overview:
The acquisition of mStable by dHEDGE represents a significant step towards becoming a leading yield vault aggregator across multiple chains. As part of this acquisition, mStable’s Treasury ($2,100,000) has been liquidated and bridged to Optimism. The funds are now deposited into the dHEDGE Vault — mStable Treasury Yield Vault, earning a secure yield while facilitating easy redemption for MTA holders.
MTA holders now have limited downside risk and unlimited upside potential, with a floor price established as per MIP-33 calculations. dHEDGE has set the MTA floor price equal to the mStable Liquid Treasury (excluding MTA) divided by the MTA Circulating Supply (adjusted for unvested investor/advisor tokens). This price is set at $0.0318 per MTA.
We are confident that revenue generated from new mStable vault strategies will contribute to the growth of mStable and MTA value well into the future. For now, mStable governance will be integrated into dHEDGE governance until a new MTA governance structure is established. A forthcoming MTA governance staking mechanism will align MTA more closely with the success of its underlying vaults.
Roadmap:
With the acquisition completed, our primary focus is on the growth and development of mStable’s competitive yield products. Our ambitious roadmap for the future includes several key initiatives that will enhance the user experience and promote adoption. Here are some highlights:
- mStable is set to launch on Optimism with three new yield products — Ethereum Yield, Stablecoin Yield, and Delta Neutral Yield — in the coming weeks. These offerings will provide users with competitive yield options while leveraging the Optimism network’s benefits, such as faster transaction speeds and lower gas fees.
- We have recently bridged MTA to Optimism and started a new incentives program with Velodrome to deepen MTA liquidity. This program will allow MTA holders to provide liquidity for their tokens and earn yield on their tokens while also improving the trading experience for swapping in and out of MTA. Add Liquidty on Velodrome here.
- MTA Redemption — As set out in MIP-33, MTA holders will be able to swap their MTA for stablecoins at the fixed floor price of $0.0318 per MTA. Redeemed MTA will be immediately burnt, reducing the MTA circulating supply.
- The Meta-vault relaunch is in development and will be released in the near future. It will aggregate yields from multiple yield vault strategies. Additionally, mStable plans to create a cross-chain Meta-vault that can aggregate the best yields across any chain, further enhancing the competitive yield products offered by mStable and dHEDGE.
- The launch of a revolutionary DeFi product: a flatcoin, which is a low-risk, decentralized stable asset that not only increases in value over time but also effectively hedges against inflation. The flatcoin will be backed on-chain without exposure to off-chain USD assets. The capital efficiency of this flatcoin is derived from it being fully backed but not over-collateralized, achieving an ideal balance for a stable and growing asset. The flatcoin will be created through hedged positions involving long ETH yield and short ETH perpetual futures.
Conclusion:
The acquisition of mStable by dHEDGE is a strategic and powerful move that positions mStable as a pioneer in the future of DeFi and yield vaults. The protocol is well-positioned to attract new users and drive adoption. We are excited to be part of this innovative DeFi ecosystem and look forward to collaborating with dHEDGE to bring the benefits of decentralized finance to a wider audience.
