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.
Save v2: A Tokenised Savings Account
mStable Save is now tokenised as
imUSD. 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
mUSDin 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
mUSDmarket 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.
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
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.
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.