The mStable TreasuryDAO has recently published the Q4 2021 Treasury Report. In this article, we take a closer look at some of the highlights.
The year in review
mStable has seen tremendous growth in 2021 with its huge emphasis on security. We have secured more than US$118m of wealth for our users and generated more than US$3.3m of yield for depositors. Our flagship product, mStable Save, remains the industry-leading savings account that shares a portion of revenues back with MTA stakers.
As seen in the chart below, mStable Save USD has outperformed our closest competitors in 2021 in terms of yield, offering leading yields of above 10% APY when the total annualised return is considered, at the highest possible level of safety and security.
Our other product, mStable Save BTC, has also performed remarkably well over the year, leaving competitors in the dust and outperforming them by more than 30x in 2021. mStable also remains the best BTC savings account in the market.
mStable has preserved more than US$150m in mUSD and more than 250 mBTC at their respective peaks in November, demonstrating clear market demand for a secure and high yielding savings product in DeFi.
Treasury updates
The mission of the mStable treasury is to maintain our decentralised autonomy and fund ongoing operations in perpetuity. This includes strategic fundraising through token sales, grow the treasury’s NAV and custody MTA not in circulation on behalf of the DAO.
One of the key goals of the treasury is to distribute $2m per year from 2023, and $5m per year starting in 2024 for core operations. We partnered with liquidity management protocol Gamma Finance and Ondo Finance in October 2021 and December 2021 respectively. The treasury also completed its first round of bond sales in November 2021 and deployed the underlying liquidity to Convex Finance.
The treasury now controls US$11.4m in value, of which 66.3% is controlled by the TreasuryDAO, 32.4% by the Funding SubDAO, 1.3% by the Asset Management SubDAO. The breakdown is as follows:
MTA updates
MTA is the governance token for mStable, voting on the protocol’s future direction and where future MTA emissions will go towards. In addition, MTA stakers now receive a portion of protocol revenues.
Out of the 55m MTA that’s currently not in circulation, 53.6% is locked up in the emissions controller, which is now fully controlled by MTA stakers who vote to direct where emissions go on a weekly basis. Currently, 18.4% of the current MTA in circulation is staked.
A portion of governance fees are used to buyback MTA from the market and distributed to MTA stakers. On a year-to-date basis, more than $580K was returned to stakers in MTA.
The revenue share with MTA stakers has grown significantly in Q4 relative to Q3, with governance fees having more than quadrupled compared to the previous quarter.
Looking Forward
2022 is a looking to be an exciting year for mStable from both a product and governance perspective. With mStable V2 in the horizon and a healthy V1 to build and improve on, we are excited to truly scale our best-in-class product to bank the next billion users on the blockchain in the more secure way possible.
The Treasury DAO is now focused on optimising the treasury to ensure protocol sustainability in both bull and bear markets and continuously maximise value for MTA stakers.
Read the full report here.
About mStable
mStable is a secure savings layer built for DeFi for pegged-value crypto assets.
