mUSD Upgrade Coming Up
Everything you need to know
The mStable team has been busy preparing for the mUSD migration happening next Monday 22nd March.
mUSD’s basket of stablecoins has so far allowed swapping according to a constant sum market maker. Meta Governors recently decided to upgrade this bonding curve to Stableswap, which will address some of the shortcomings of the constant sum market maker, and will be able to:
- flexibly target specific bAsset weights (i.e. max weights and minimum weights)
- be more composable
- guarantee a minimum amount of liquidity
- likely increase swap volume
The upgrade and basket composition were approved by Meta Governors in the following votes:
The basket composition after the stableswap implementation will change from: TUSD, sUSD, USDC, and USDT to DAI, USDT, sUSD, and USDC.
No smart contract upgrade is risk-free, but the mStable core development team has done everything it can to ensure that the upgrade goes smoothly.
To ensure this upgrade goes smoothly, the mStable development team has:
- Had an independent audit of the stableswap bonding curve by Peckshield ran it with mBTC with a guarded launch, which has been a success. Stableswap has been used in Curve and other leading protocols. It is one of the industry’s most battle tested bonding curves.
- Had an independent audit of the contract upgrade function by Peckshield
- performed and tested the upgrade using a mainnet fork to deterministically test the result of the upgrade, prior to the upgrade date, which was done without any issues
What is left to be done before Monday 22nd:
- DAI will be added to the basket as per Meta Govenor votes & set max weights to 25.01% for DAI, USDT, sUSD, USDC and TUSD to 0%.
- Arbitrage will likely balance the bAssets to the required levels
- App options Mint/Swap/Redeem will be somewhat restricted during the course of the week-end
- Users will be able to redeem their mAssets and imAssets at any time as normal
On Monday 22nd, day of the upgrade launch:
- An arbitrage will be performed using a combination of Synthetix DAO’s sUSD and mStable’s project funds
Once these 2 prior steps have been conducted, these will follow:
- Basket goes into recollateralisation mode disabling swaps
- Contract upgrade performed and manually verified
- Basket returns to normal with swapping enabled
The mStable community are really excited about this upgrade. If you do not agree with it, please redeem your mAsset before Monday 22nd.
Onwards! 💪
