mStable Launches mBTC!

James Simpson
Feb 12 · 6 min read

Summary

Today, we are excited to announce the launch of mStable’s second mAsset, mBTC.

Choose your mAsset at app.mstable.org
  • mBTC is the second meta-stablecoin released by mStable, following mUSD. Meta-stablecoins, or mAssets as we call them, are an important primitive in DeFi: they enable a step-change in capital efficiency and will be used to bridge and unify value securely and efficiently (more of this to come in a future post!)
  • Smart contract security is mStable’s number one priority. It has been decided that this will be a guarded launch, a concept first articulated by Ken Deeter of Electric Capital. This means there will be mBTC TVL caps in the first few weeks post deployment. This is in addition to mStable recently doubling our bug bounty. mBTC has also been audited by Peckshield.

Get started

  • Head to the mStable app and click on mBTC!

What is mBTC?

mStable’s new mAsset, mBTC, unites various Bitcoin-pegged ERC20 tokens.The mBTC token can be minted with wBTC, RenBTC and sBTC, and you can redeem it for those three Bitcoin tokens. Binance’s bBTC will be added next month in our first Feeder Basket. You can read more about the Feeder Basket concept here.

  • Abstraction value: mBTC is an abstracted, synthetic version of BTC. This abstraction layer allows mStable to use the collateral assets more efficiently to generate an outsized yield for savers (see below) while enabling new types of features, not possible with the underlying collateral. One such feature is the vision that mAssets will be used as bridge currencies, connecting and unifying tokenised representations of value, regardless of where that value is. There is a world where mAssets can be backed by collateral on any chain or layer (layer 1 or 2 Ethereum) but could move freely between those “jurisdictions”. Given mAssets are backed by fully-functional AMMs, users can redeem mAssets for their pegged asset of choice at any time.
  • Capital efficiency: mStable doesn’t inextricably connect the capital value of deposits with their future income (the LP token model). Instead, mStable separates the capital from the yield. This enables several things: one, it means mStable can be uniquely flexible with the income it generates. Second, it means that the mBTC deposited in Save is able to be used itself to generate even more yield, beyond that which has been generated by the underlying collateral.
  • more composable mAssets
  • guaranteed liquidity owing to the introduction of the bonding curve
  • increased swap volume (modelled)
  • reduced implementation risk
  • enable mAsset “feeder baskets”, making mStable scalable without adding to system risk (more information to come in a future MIP)
  • leverage each mAsset’s save rate

Mint mBTC here

mBTC Save

mBTC increases capital efficiency through combining possible lending income (placing deposits on on Compound or AAVE, for example) or investment income (i.e. in a yvault) of collateral assets with native trading fees from the AMM (called Swap).

Head to mBTC Save here

Sushiswap Earn pool

mBTC has launched with an earn pool on Sushiswap. Currently there is a pro-rata amount of MTA allocated to that pool, and these rewards will ramp up to 15k/week as the guarded launch matures (see below).

Head to mBTC Earn on Sushi here

Guarded Launch

Approval

This new mAsset was first proposed by the mStable protocolDAO:

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