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mStable Launches mBTC!


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

Choose your mAsset at
  • mBTC is a meta-stablecoin based on tokenised Bitcoin, with a weight-limited basket of assets and a native interest rate.
  • 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.

mBTC is also the first implementation in DeFi of a fully-functional meta-stablecoin producing AMM 🔥

What do mAssets and mBTC enable?

  • Built-in risk minimisation: All Bitcoin representations on Ethereum expose the holder to some level of risk. Moving Bitcoin to Ethereum is an imperfect exercise and there is non-zero risk of one or multiple of these mechanisms failing for technical or regulatory reasons, for example. mBTC is built from the ground-up with this tail risk in mind: if a tokenised BTC fails, it will not be catastrophic for the holder of mBTC, because mBTC caps the holder’s exposure to that asset. Soon, the mStable protocolDAO will be proposing a recollatoralisation feature, which will use MTA to back up all mAssets. This will mean that the holder may not even notice if an underlying asset fails.
  • 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.

mBTC is the first implementation of StableSwap’s powerful bonding curve into mStable. As background, the AMM design used for mUSD, the first mAsset, is called the Constant Sum Market Maker, with the invariant ∑i xi = k. With the CSMM, underlying assets can be minted, redeemed and swapped 1:1. With StableSwap, mStable is able to significantly increase the utility of mAssets while retaining and extending the core traits of mAssets. This AMM will enable:

  • flexibly ensuring specific collateral weights (i.e. through minimum and maximum weight limits)
  • 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).

All of this income is sent, in mBTC, to mBTC save. The mBTC deposited could also theoretically be used to generated even more yield. Users that deposit into this savings account receive the imBTC token, that can be used throughout DeFi.

There’ll be a lot of updates in regards how Meta Governors can decide to increase the yield in this feature: the vision is to make imBTC the Bitcoin collateral of choice in DeFi. Expect to hear a lot more about integrations in the coming weeks and months!

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

DeFi systems can design in configurable rules and thresholds that intentionally limit the functionality of a system. A new contract is deployed in a “guarded launch” with a conservative set of parameters, allowing users to interact with a product in a limited scope. As users and developers gain confidence in a system over time, governance processes can act to relax these risk controls to allow the system to grow and unlock scale.

— Ken Deeter, Electric Capital

To further demonstrate mStable’s focus on smart contract security best practice, mBTC is doing a guarded launch, with a max TVL limits gradually increasing overtime. This is partly due to the introduction of the AMM.

We hope that other projects follow this launching method. Thanks Ken for leading the way with the concept.

We should also note that swap fees will start high (20bps) and decrease to 4bps at the end of the guarded launch. This is to dampen any outsized arbitrage that would appear during early weeks when mBTC will have a enforced low TVL.


This new mAsset was first proposed by the mStable protocolDAO:

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