- mStable works on a smart contract system that is built on the Ethereum blockchain.
- Stability Labs has launched mStable, a new protocol that is built to unify the tokenized asset economy while for decentralized finance (DeFi) applications.
- Every financial service is packaged into an application that runs using smart contracts by using stablecoins.
Stability Labs has launched mStable, a new protocol that is built to unify the tokenized asset economy while for decentralized finance (DeFi) applications. The protocol is meant to allow users to secure tokenized assets, or stablecoins, as they are more popularly known; while presenting them in a unified space.
Most financial services are moving over to the Ethereum blockchain, and this change has been what the decentralized finance revolution has been all about. Every financial service is packaged into an application that runs using smart contracts by using stablecoins.
But with the number of DeFi applications hoarding the market, there is large fragmentation that causes concentrated counterparty risk.
This is the problem that mStable seeks to solve by providing one platform that brings together tokenized assets. The company includes an SDK that allows for the protocol to be directly integrated into DeFi applications or into exchanges.
The fragmentation issue lies in that there are a number of stablecoins backed by the same stable commodity or currency that makes it difficult to build decentralized applications that support them all.
mStable solves this by introducing a new, decentralized protocol that unifies all the various stablecoins backing the same stable asset into one single asset per peg that will be more utilitarian, stable, and reliable than all the existing fragmented assets.
This will also secure the tokens further due to the pooling nature of all the similar tokens so that damage to one single token doesn’t affect the customer’s investment.
mStable works on a smart contract system that is built on the Ethereum blockchain. Upon release, mStable is launching three main tokens: mUSD, representing a fiat currency backed by the US Dollar; mGLD, a commodity-backed by physical gold; and Bitcoin, the leading cryptocurrency.
There is also a mStable system token called Meta that will be responsible for the fees across the mStable asset trading, decentralized governance, and to provide an incentive for the growth of the mStable protocol. Each mStable asset will be backed by several stablecoins of similar commodity or currency backing and also by the Meta token.
For its release, the company has announced that 20% Meta (MTA) will be paid out to those who mint the system token simply by exchanging it with another stablecoin of similar value. This is part of an open reward pool to bootstrap participation in the protocol.