Hello Wealth Mastery subscribers and welcome to another deep dive into one of the lesser-known projects in the space. This week you’re in for a treat with the most detailed report so far. We’ll be looking at not just a new protocol but a new concept for stable coin governance altogether within a project called Meta.
Introduction
Meta (MTA) is mStable’s (mUSD) protocol token. MTA is used to ensure the integrity of the system in the event of permanent loss and has a few core functions in its protocol. Not only as the ultimate source of re-collateralization (insurance) for mASSETS (MetaAssets). But, to also coordinate decentralized governance in order to incentivize the bootstrapping of mStable asset liquidity, utility, and community of Governors. Whereby reducing complexity and fragmentation, mStable looks to change and deepen the usability of stable coins. With mStable assets being liquidity shares that also function as stable coins in their own right. Making each pegged to a unique asset, such as fiat currency like US dollar (mUSD), a commodity like Gold (mGLD), or a cryptocurrency like Bitcoin (mBTC). By staking Meta and becoming a governor, a user may receive mUSD, mGLD, and mBTC backed tokens. However, Meta (MTA) itself does not earn any kind of return or reward if left unstaked by a user and has no influence over the system’s governance. The interface developed to facilitate these functions is the mStable app.
The first mASSET created is mUSD and can be minted against any other whitelisted stable coin. Minting a mASSET offers immediate 1:1 (zero slippage) conversion of a bASSET (BaseAsset) into its corresponding mASSET. For the mUSD asset, the underlying bASSET could be USDC, TUSD, USDT, USDC, GUSD, DAI, and so on. If you send 100 DAI to the mUSD contract, you will receive 100 redeemable mUSD back. This can be done by selecting the “MINT” tab in the mStable app and depositing your stable coin to receive mUSD. Governance controls the addition/removal of bASSETS. A basket adjustment occurs when governance chooses to change the maximum weight of a bASSET or when a bASSET is deemed unfit for inclusion. Minting validity always remains the same. This means that if Governance lowers the maximum weight of a bASSET so that it is below its current collateral level, minting is temporarily disabled with this bASSET until it is below its maximum weight. So long as the underlying bASSET is not overweight a user can “SWAP” out or “REDEEM” mUSD for its underlying collateral at any time.
“EARN” is a dashboard function through which users can see all of their yield farming options on mStable in one place. It is the place where all ecosystem rewards are currently distributed, and will likely be where future initiatives and incentives will be made accessible. Users can view the current list of incentivized pools and platforms available and choose those they would like to contribute to. After depositing and receipt of your ERC-20 LP (liquidity provider) token from Balancer or Uniswap, simply stake the LP token in the app where rewards are earned in real-time on a second by second basis. You can claim your rewards or withdraw your stake at any time. Currently, there are five pools available to choose from with four on Balancer and one on Uniswap. Reward APY returns range from 50% all the way up to 140% at the moment….
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
