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.
- Official: https://mstable.org/
- Documentation: https://docs.mstable.org/
- Code: https://github.com/mstable
- Forum: https://forum.mstable.org/
A full list of our audits and security reviews can be found here in our docs https://docs.mstable.org/protocol/security#auditing
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.