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mStable Launches New, Composable Version of mUSD Save

Since launch in July 2020, mUSD Save has been one of the easiest to use, secure, low volatility and high-yielding savings products in DeFi.

mStable solves for a low-interest rate world by creating a unique automated market maker that autonomously lends out all deposited USD stablecoins onto third-party lending protocols while simultaneously allowing for these same stablecoins to be swapped, earning trading fees. This AMM produces meta-stablecoins instead of LP tokens: this has several consequences, one of which is that we can create a separate savings account to which system revenue is sent.

Today, the mStable genesis team releases mUSD Save V2 — a tokenised savings account, for anyone, anywhere. This release was first proposed by Richard Galvin of DACM here and then ratified by Meta Governors here.

  • If you are an existing Save user, please note that funds must be manually migrated from Save v1 to Save v2.
  • How to Migrate from Save v1 to Save v2 can be accessed here.
  • Audit report by Certik here.
  • Take me to the app. A migration assistant has been created here.

Save v2: A Tokenised Savings Account

mStable Save is now tokenised asimUSD. Today, users depositing mUSD into Save will instantly receive a new savings credit token called imUSD at a ratio of 10:1 on Save deposits.

imUSD can now be transferred and used throughout DeFi as yielding, low-volatility collateral. We have built imUSDas the “set and forget” collateral that you use as you trade on your favourite DeFi protocol. Note that it is significantly cheaper to send imUSD than, for example, c-tokens (c. 40,000 vs. >100,000 in gas fees).

Expect to see a lot of imUSD integrations coming in the next few months.

Enhanced Capital Efficiency

Deposited mUSD in Save can now be used to earn additional yield.

Savers effectively get >$1 worth of interest for their $1 deposit:

  • First, Savers earn yield on the assets that collateralise mUSD, both from lending, swapping and other income sources.
  • Now, Meta Governors can choose to allocate a portion of mUSD in Save to other DeFi protocols. For example, yearn just released an mUSD yVault. In future, a portion of mUSD Save deposits could go there, or anywhere else Meta Governors choose — think Compound or AAVE when an mUSD market emerges there.

This is only possible because of the capital efficiency enabled by mStable’s meta-stablecoins.

Savings Boost for Stakers

All savers can now earn Meta (MTA) to govern the mStable protocol.

The imUSD Vaultis an upgraded StakingRewards contract, with baked in incentives providing a ‘boost’ for participants who are also actively staking their MTA in governance. Those not staking their MTA in governance will still receive base level MTA rewards if they stake in the imUSD Vault. The specific vMTA requirements will vary depending on the total amount of imUSD and vMTA staked at the time. A lockup has also been implemented, where users will be able to claim 20% of their MTA upfront, and the remaining 80% after 6 months.

Users of mStable can govern their protocol: this is important as mStable is a decentralised collective, co-ordinated and directed by Meta Governors.

Effective immediately, Save v2 is open for deposits! Please note that interest will cease to be sent to Save v1 and be entirely redirected to Save v2.

Beginning at 16:00 GMT (11:00 Eastern time / 17:00 CET), interest will be directed from Save v1 to Save v2, and imUSD will begin to accrue value.

Please note that the imUSD Vaultis generating MTA rewards as of now.

Next Steps

Thanks to the community for pushing the proposal forward, approving it, and working so closely with the genesis team on terrific ideas that make the mStable protocol more composable.

We look forward to users migrating across to Save v2 and working with Meta Governors to decide which strategies to use to further boost Save v2’s APY.

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