mStable
mStable assets represent some underlying value peg and are minted/redeemed on-chain via smart contracts. mASSETS are backed 1:1 by a basket of existing tokenised same-base assets. Each mASSET is a liquidity share for its asset pool as well as a medium of exchange, unit of account and store of value in its own right. Each mASSET has an outsized native interest rate that is derived from lending basket assets on third party lending protocols combined with fees collected from mStable's SWAP product. Users can swap between basket assets with zero price slippage, regardless of order size. For example, in mUSD, users are able to swap 1 DAI for 1 USDC at no cost, except gas and a small fee.
Integrations
Derive Protocol Acquisition by Synthetix Raises Community Concerns
Mon 19th May 2025
The acquisition of Derive Protocol by Synthetix has sparked controversy due to its lack of transparency and community involvement. Drawing parallels with mStable's previous acquisition by dHedge, critics highlight how mStable handled their transition with full community participation and transparency.
Key differences in approach:
- mStable announced financial challenges early
- Explored multiple acquisition offers openly
- Gave token holders voting rights
- Founders abstained from voting
The situation raises important questions about DeFi governance and token holder rights. Two proposed solutions for Derive:
1. Sunset protocol and distribute treasury
2. Open acquisition talks to multiple parties with community input
*This case highlights the growing tension between centralized decision-making and DeFi's core values of transparency and community governance.*
mUSD Deprecation Announcement
Thu 13th Mar 2025
mUSD and imUSD are entering deprecation phase with immediate effect. Key changes:
- New minting of mUSD and imUSD tokens is now disabled
- Existing holders can claim their underlying assets
- Legacy support application will be updated to facilitate withdrawals
This follows similar deprecation patterns seen in the ecosystem, such as the recent rUSD platform shutdown. Users should take action to withdraw their assets through the updated legacy support interface.
On-Chain Basis Trading Evolves with New Token Options
Thu 19th Dec 2024
On-chain basis trading is evolving through individual tokens, offering alternatives to traditional approaches. Two notable examples:
- **Ethena's USDe**: A centralized but popular implementation
- **0xflatmoney's UNIT**: An emerging decentralized alternative
These tokens simplify delta-neutral basis trading into a straightforward token purchase, while maintaining high yield potential. The key innovation is the removal of centralization barriers while preserving the benefits of perpetual basis trading.
*Key benefit*: Simplified access to basis trading strategies through single token exposure.
