We are excited to share the mStable Improvement Proposals (MIPs) that the core team will soon put to MTA Governors for implementation.
These proposals will dramatically increase the utility of mStable and Meta, eliminating key growth bottlenecks that we’ve identified, ultimately producing a more responsive and composable protocol. The aim is to become a billion dollar DeFi protocol: implementing these proposals are critical milestones on that journey.
Assuming MTA Governors pass these proposals, they will be implemented within the next 3 months. Summary
- A novel automated market maker (AMM) designed by our head of RD at mStable, Onur Solmaz. The upgrade will enable an Incentivized Constant Sum Market Maker that enables guaranteed liquidity across all whitelisted stablecoins, both when swapping underlying stablecoins and when redeeming mUSD. Modelling shows large increases in system arbitrage and swap volume, and therefore protocol revenue. The upgrade is gas efficient and makes mStable more composable with other DeFi protocols. We are really excited to share more detailed information on this significant upgrade in the weeks to come!
- mBTC will create a liquidity pool of Ethereum representations of Bitcoin, and in doing so produce a suite of products that leverage these assets such as efficient BTC swaps that feed the mBTC save rate. Tokenised Bitcoin is one of the fastest growing verticals in DeFi and mStable is well-positioned to take advantage of this migration by producing a meta-BTC that has guaranteed liquidity in all major tokenised Bitcoins, diversifies risk, and works to produce an outsized BTC yield through supplementing lending income with BTC swap fees.
- The core team will improve MTA’s emission and tokenomics by automating MTA’s emission process. The proposal creates better incentives for long-term liquidity provision by introducing a weight-based system similar to mStable v1 Staking, and disincentives flash yield farmers.
- The gas related MIP-3 is likely to provide a c. 70–90% gas savings across various app functions such as minting, swapping and redeeming. MIP-4 will reduce SAVE deposit gas costs by c. 50%.
Click here to read the in-depth roadmap over on our Medium publication.