ARC: Listing proposal of mStable assets: mUSD and imUSD

Listing proposal of mStable assets on Aave: mUSD and imUSD

To the Aave community, the mStable genesis team would like to submit a new ARC asset onboarding proposal for two mStable assets: mUSD and imUSD.

mStable is building autonomous and non-custodial stablecoin infrastructure, and leverages lending income with trading fees to produce higher yielding, more capital efficient assets. It was created to tackle three major issues facing stablecoins today:

  • The fragmentation of same-peg assets
  • The lack of native yield
  • The lack of protection against permanent capital loss

About mUSD and imUSD

mUSD is a diversified meta-stablecoin that tracks the US dollar. It is available and liquid on Curve and Balancer and is increasingly being integrated across the broader DeFi ecosystem: 1inch, ARCx, Rari Capital, OpenDAO’s Open Market and many more.

imUSD is a tokenised and composable representation of mUSD deposits in mStable’s Save v2 contracts, a best-in-class savings account for DeFi. We envision imUSD would only offered as a collateral option on AAVE, and not be used for borrowing.

mUSD is currently only supported on CREAM’s Iron Bank.

imUSD is not yet supported on any major lending markets.

Benefits of adding mStable assets on Aave:

  • Diversification of stablecoin assets: mUSD is a meta-stablecoin with risk minimisation characteristics and censorship resistance. Adding mUSD would decrease aggregate risk in the Aave ecosystem
  • Once mUSD support is live, ~7M mUSD could be deployed from mStable’s Save v2 contract to seed the market for borrowing, increasing Aave’s TVL.
  • imUSD would be the first collateral yield bearing asset (pure USD yield) to become available for use on Aave.
  • Pave the way for future mStable assets on Aave: We have just released mBTC, and intend to release other stablecoins such as mEUR and mETH in future. mUSD and imUSD integration would set the stage for further collaboration between mStable and Aave’s ecosystems in future should that be desirable for the Aavengers.

Useful links

Audits/Security reviews:

A full list of our audits and security reviews can be found here in our docs https://docs.mstable.org/protocol/security#auditing

Risk Score

We are happy to defer to the Risk team to evaluate mUSD and imUSD, but after an initial assessment of the Aave’s risk framework we feel they would sit somewhere between C to B-

Thanks for your consideration Aave community! We look forward to hearing your responses.

20 Likes

It is worth noting 2 other positive circular effects resulting from a potential listing of mUSD:

  1. mStable is set to create and incentivise feeder pools for mUSD, which are 50/50 pools composed of [fAsset, mAsset], e.g. [bUSD, mUSD]. These pools are expected to be deeply liquid, and the assets in which can and will be lent out wherever possible to increase pool APY. Which an active market for mUSD, there is potentially 10’s of millions of liquidity waiting to be deposited here in the short term.

  2. mStable has been an avid liquidity provider to Aave since Aave was at $5m TVL. Over the course of the past 6 months, assets in the mUSD basket have been lent on Aave markets. Adding mUSD as a market on Aave will only have a positive effect for mUSD overall TVL, and thus will provide not only more mUSD deposited through the SAVE contract (as mentioned by Fauve above), but also from the underlying mUSD collateral (USDT, sUSD and TUSD).

It is also worth considering how an efficient market could cause more positive circular effects with the ability to borrow mUSD at a reasonably low rate through Aave, and the opportunity to earn high yield through deposits into mUSD’s savings account.

10 Likes

100% in support. Mstable has been a friend to Aave and Aave to mstable for a long time now.

This initiative is a natural fit and of mutual benefit to both.

12 Likes

Fully support this.

  1. imUSD - passive interest bearing. (Stable that increases in value)
  2. mUSD - Basket representation of stables
  3. MTA - mstable token.

imUSD is very cool and it would be the first collateral source that keeps going up in value as it passively accrues interest.

8 Likes

100% support this. Can only show my reiterate the great points made above.

5 Likes

I am in full support of adding Mstable.

4 Likes

I am in full support of this initiative.

4 Likes

mStable are OG’s. They’ve got a quality stablecoin derived from a basket of stables and are doing very interesting things with their mBTC asset. Their team have consistently been building throughout 2019, to the August DeFi mania, all the way to now. To not take this proposal into consideration would be actively avoiding more TVL into AAVE due to the pure amount of hype, interest, trust, and value mStable has generated for DeFi.

Don’t bet against them.

3 Likes

Fully support this. Let me know if I can help

4 Likes

I fully support this proposal, which I see as a win-win for Aave and Mstable in our increasingly interconnected DeFi ecosystem.

4 Likes

fully 100% in support. Mstable has been a support to Aave and Aave to mstable for some time now.

with DEFI on the raise great to see colab

4 Likes

Mstable is a MUST. Fully support.

3 Likes

Definitley support the integration of mUSD/imUSD, its a no brainer

3 Likes

Fully support this proposal

2 Likes

Win-Win…Let’s do it!

2 Likes

Completely support this proposal!

2 Likes

Fully support. Benefits both Aave and mStable. mUSD decreases peg risk and encourages capital efficiency.

1 Like

mUSD good project… id love to see it on AAVE

3 Likes

I fully support this

1 Like

Aave :handshake: MTA

1 Like