Buy mStable USD (MUSD)

What is mStable USD?

mStable USD (MUSD) is a decentralized stablecoin built on the Ethereum blockchain, designed to offer stability and reliability in cryptocurrency markets. It is backed by a basket of USD-pegged stablecoins and uses smart contract technology to ensure transparency and security. MUSD aims to provide a stable value, acting as a medium of exchange and unit of account within the DeFi ecosystem.

How does mStable USD work?

mStable USD operates using a combination of blockchain technology, smart contracts, and a unique asset-backing model. Here is how it works:

• Ethereum Blockchain: MUSD is built on Ethereum, utilizing its decentralised network for security.
• Proof of Stake: Ethereum's consensus mechanism selects validators based on the cryptocurrency they hold, making it energy-efficient and secure.
• Smart Contracts: These are used to mint, swap, and redeem MUSD, managing the basket of underlying stablecoins like USDC, DAI, USDT, and sUSD.
• Algorithm: The Stableswap AMM invariant algorithm ensures efficient price determination without relying on external oracles.
• Decentralised Nature: Facilitates censorship-resistant transactions free from centralised control.

What are the potential use cases for mStable USD?

mStable USD's features allow for diverse use cases across the DeFi landscape:

• Medium of Exchange: Used for transactions and payments.
• DeFi Lending and Borrowing: Available on platforms like Aave and Compound.
• Stablecoin Swaps: Facilitates stablecoin exchanges with minimal slippage on platforms such as Curve and Balancer.
• Savings: Provides yield through mStable's Save contract, which combines lending income and fees.
• Liquidity Provision: Offers rewards for supplying liquidity in mStable's Feeder Pools.

What is the history of mStable USD?

mStable USD was conceived by James Simpson in 2019, with the goal of solving friction points in DeFi by integrating stablecoins, lending, and swapping into a unified protocol. Here are the key historical milestones:

• 2019: Development of mStable commenced.
• May 2020: Introduction of mUSD stablecoin and Save product.
• July 2020: Launch of governance token MTA and Earn product.
• Integrations: Incorporated into DeFi platforms like Aave and Compound, and available on exchanges like Curve and Balancer.

MUSD continues to evolve as a significant player in the stablecoin sector, maintaining its peg through algorithmic adjustments and the backing of a diversified pool of stablecoins.