We launched our very first community call and AMA over the week with our community members as part of our broader journey towards decentralizing mStable.
Our goal is to engage with the community, increase transparency around the project’s current state, and communicate clearly how the community can contribute as active participants in mStable’s growth. Thanks to everyone who joined us!
From the Co-Founder
James Simpson — Co-Founder of mStable — highlighted the importance of the community being active participants in the decision-making process of mStable, which is built to be a decentralized platform ultimately governed by the holders of Meta (MTA).
The community is more than just asking questions to the core team, you guys should see yourselves as governors of the protocol, and we are really excited to hear your thoughts on how to grow mStable into a billion-dollar protocol as quickly as possible.
Introduction to the team
The team has more than doubled in size from 4 to around 10 people today.
From Community to Operations, and Engineering, we are dedicated to building the best community-focused and resilient piece of infrastructure of the emerging decentralized financial stack.
A new update on Staking
Staking is a key roadmap item and we are working very hard to build a version of it that is ideal for our governance process.
In V1 staking, where re-collateralization is not yet enabled, we are keen to track the mechanism as close as possible to V2 staking.
Staking MTA will allow holders to lock up MTA — between 1 week to 1 year — and vote in community proposals on certain protocol changes, weighted by the amount of MTA and the duration of lock-up while earning a return in MTA.
Participants who commit to a longer lockup will receive a higher portion of rewards and voting weight for use in V2 staking based on a multiplier; and rewards will be accumulated on a second-by-second basis.
Using the voting weight of the vote in the staking contract, participants can take part in V1 of the voting dashboard to signal on mStable Improvement Proposals (MIPs) such as liquidating rewards owned by the protocol and allocation of treasury funds and development grants.
The staking contract will be sent for audit next week and once the front-end is completed, the aim is to release V1 staking towards the end of the week (September 25th).
Updates on mStable Products
When it comes to EARN pools — which are a key source of secondary market liquidity for mAssets and MTA — we are constantly engaging the community to hear which EARN pools should be funded and how much they should be funded.
While we are working towards communicating changes to the EARN pools better, we are also building towards a more automated process in the long-term where community-decisions in governance can decide on the way how these EARN pools are going to be funded.
We are also working to include the BAL rewards into the aggregate APY number to be shown on the EARN dashboard to better reflect the total return on providing liquidity in EARN.
We are aware that a bAsset locked maximum weight causes some problems with composability. With this in mind, we are exploring new ways for our SWAP product to operate whilst still responsibly managing risk.
Concretely, this means we are actively researching an upgraded AMM and bonding curve to improve the way users swap underlying assets. We hope this upgrade will improve composability, and increase swap fees collected from the protocol. We would also love to hear the community’s thoughts about this topic either in Discord or in the forum.
SAVE is one of our earliest products and we are delighted to see our users getting a high return on their deposits.
We are currently exploring various initiatives to enhance SAVE including more varied offerings and adding more analytics for SAVE showing extended yield figures beyond the past 7 days. Those using SAVE currently can also expect their returns to be bolstered by the outcomes of our second MIP, which liquidates COMP held by the platform to boost the SAVE APY.
Announcing the mStable Grants Program
On this month’s call, we also announced the mStable Grants Program, which is currently in its final planning stages. Over US$200,000 worth of mUSD and MTA tokens in total will be distributed over the next 12 months to developer and community initiatives.
Leading this initiative is Tom Nash of FlexDapp$, with the maximum grant per project being set at $50,000 USD in value being given to build on mStable.
For teams who are keen to receive their rewards in MTA, there will be a 20% bonus on the amount received, vested over 2 years.
Further details about the program such as the Github repository and funding details will be released soon, so keep your eyes peeled for that if you’re interested.
mStable Forum Launch
As we have previously announced, our mStable forum is now live and community members can easily create discussion topics to change system parameters, add new bAssets, and add new pools.
The forum is an avenue for formalized discussions that require a thoughtful proposal that other venues such as Discord might not be suitable for.
Community-first decision making
While we are still in the midst of a rough consensus process, decisions such as product roadmaps on how mStable should be governed will be made from the community via governance as we further decentralize the protocol, hence nothing — including what was discussed during the call — should be seen as final and absolute.
Addition of different bAssets
There have been discussions on adding new bAssets such as sUSD into the basket.
It has also opened up some problems with our constant-sum bonding curve with the main problem being DAI remaining above peg, making it costly to mint mUSD with it.
Integrating HUSD and HBTC into mStable
The other proposal made by Huobi Global, which has listed MTA, has also proposed to add HUSD and HBTC as bAssets.
dHedge/mStable incentivized pool
dHedge is a new project that is building a decentralized hedge fund on top of Synthetix and there will be a proposal about an incentivized mUSD/DHT pool onto Balancer.
We will be discussing specific proposals brought up by the community like these in future calls which will be more technical in nature, but these calls will be recorded so that voters can make informed decisions before they vote.
The future of mStable is just beginning
We have built an ecosystem of people around a really big idea which is a vertically integrated version of many elements from other projects such as liquidity pools, insurance, savings accounts, and exchanges.
We have designed a savings account and an exchange that drives yield for savers, on top of a risk-minimized stablecoin as users increasingly demand higher risk-adjusted returns on their assets.
The potential for mStable to grow into something big is enormous if we all, as a community, put our collective minds to work.
We can’t wait to listen to the community’s feedback on upcoming proposals and for you guys to put forward new proposals that will grow the protocol even further.