mStable: Everything you need to know

Source: CoinGecko

We have been seeing rapid advancement in technology for a long time now but it was never really anticipated that technology will be able to replace the physical form of money so soon. Over the years, there has been a lot of currencies that came up but, only a few of them were able to mark their presence on a global level, one of which is the cryptocurrency industry. 

Crypto has been around for quite some time now and has been able to witness a rapid increase in its growth and popularity and that too at a rate that was never anticipated. The said industry has been able to lure in potential investors from all around the globe and has managed to make a name for itself internationally. 

Having said that, I believe most of you are already aware of the basics of the industry but, if for some reason the answer is still no, let’s start with that first. Crypto is nothing but a form of a blockchain-based decentralized platform that can be used for a variety of purposes online. 

This virtual asset of yours can easily be used for the purpose of trade and exchange over crypto exchanges online as well as for buying and selling goods and services just like in the case of physical money but over the internet of course. 

As mentioned, crypto has been around for a long time now and those of you who have been following cryptocurrencies since their initial phase might agree with me on the fact that, when the industry was first introduced, there were not many currencies to choose from and honestly, not many investors were lining up to be a part of it either. 

But, looking around today, it feels almost unreal to witness such a large audience that the industry is catering to on an international level with newer currencies coming up every day and a lot of new investors joining in with each passing hour. 

Source: The Conversation

Also, it is worth mentioning that, some of the major contributing factors for the industry being such a huge success include its high-profit margins, ease of use, portability, the convenience it offers as well as its volatility of course. 

Speaking of being volatile, you should be aware of the fact that, the crypto marketplace is highly uncertain and the price fluctuations of the currencies are almost immediate, thus making it even more difficult for investors to predict future trends. So, it is always advised that, whenever you are planning on investing in virtual currencies, do it with due diligence. 

Talking of a lot of currencies available today in the marketplace, some of the most popular currencies that you can easily invest in right now, which might provide you with good returns include Bitcoin, Cardano, Binance Coin, Ethereum as well as Dogecoin to name just a few of course. 

Not just that, as per the chatter amongst some of the leading experts on the field, it has come to our notice that, crypto is rapidly progressing towards completely revolutionizing the global payment system and from where I stand, it looks like it has already started to do so as many merchants and businesses have started accepting crypto as an official mode of payment from their customers. 

Now that you have a brief backstory about the crypto world, you will be able to have a much better understanding of what we have with us today, mStable USD. To know more, I suggest you read further!

Everything to know about mStable USD (MUSD)

Source: Holdex

mStable or as commonly referred to as MUSD is nothing but a form of non-custodial and autonomous stablecoin infrastructure that is known to be designed in order to provide decentralized finance protocols and platforms with a base layer collateral protocol on which decentralized applications (DApps) can be developed. 

In order words, mStable is a meta-asset platform that is said to be focused on creating assets that are stronger as compared to the sum of their parts. The said platform was founded by Henrik Andersson along with James Simpson and is a protocol that is able to unite stablecoins into one easy-to-use and robust standard.

Speaking of stablecoins, they have really managed to become quite a standard for investors to peg cryptocurrencies due to their volatility. However, with any new introduction of stablecoins, there is always a risk that one of these projects might not be able to handle the US peg volatility well or can be exposed for not pegging properly. Not just that, before moving on any further, you should be aware of the fact that you can also start to lose value in the so-called ‘stable’ coin if the pegged US dollar starts to devaluate. 

Source: mStable Docs

Other than this, it is worth noting, MUSD is known to be the native utility token of the platform and is a decentralized stablecoin that is running on Ethereum, attempting to maintain a value of about 1.00 US dollars. Speaking of MUSD, you should probably be aware that, unlike many other centralized stablecoins, MUSD is not backed by the US dollar in a bank account but instead, is backed by an array of other stablecoins that are known to have been deposited as collateral on the mStable protocol. 

In addition to this, MUSD is said to act as a 1-to-1 peg to current stablecoins and then provides somewhere around 15-50 percent APY for minting it as an MUSD. For those of you wondering, how is it possible? Allow me a chance to explain. This is all possible with the Buy and Make AMM mechanism where the user deposited USD is fed into a Balancer Pool which is known to provide the above-mentioned APY interest, after which, it is possible to swap out the MUSD for your preferred stablecoin with accrued interest. 

As mentioned, MUSD is a mStable asset (mAsset) which is backed by a basket of various USD-pegged stablecoins with several features including the deep liquidity pool for a rather efficient as well as low slippage stablecoin exchange, which are mintable by and redeemable for just some specific basket of assets at a rather low-risk native interest rate that is said to provide high yield by combining trading fees as well as lending income. 

What makes mStable USD special?

Source: Coinbase

As you already know by now, MUSD is a representation of its underlying stablecoin, thus making it a much more secure representation of USD on-chain. Not just that, it can be minted and redeemed permissionless through the mStable smart contracts using any whitelisted USD pegged stablecoin. 

Furthermore, MUSD is even more unique as compared to others in the marketplace due to it offering some of the most popular risk-adjusted saving APYs in decentralized finance. Also, this APY is said to come from several sources, lending income, drawing from swap fees as well as liquidated tokens farmed by the mStable contracts

Apart from this, mStable is known to be governed by a rather diverse community of stakeholders, all of whom come together in order to provide comments, ideas, as well as to vote on proposals that are focused on improving the mStable protocol. 

Now that we have talked much about mStable, some of you must be wondering, whether or not it is a good idea to invest in the platform? If that’s the case, then let’s find out, shall we?

Investing in mStable USD (MUSD)

Source: SmartData Collective

As of today, the price of mStable is about 1.00 US dollars with a twenty-four-hour trading volume of 185,208 dollars. Not just that, in just the past twenty-four hours, the value of mStable USD has gone down by 0.83 percent, and with the current market cap of 41,160,764 US dollars, MUSD is currently placed at #640 position as per the CoinMarketCap rankings.

Also, it is worth mentioning that, the current circulating supply of mStable is 41,085,970 MUSD coins but unfortunately the maximum lifetime supply of the currency is not yet available. In just the past week alone, the price of the platform has gone downhill by 0.11 percent.

Reading so far, you must have gotten a fair understanding of the platform and by now, you should be able to figure out on your own whether or not investing in mStable is the right thing for you to do. Seeing what it has to offer when combined with its performance in the recent past as well as its plans for the near future, I certainly believe that mStable USD can prove to be a risky investment in the near future, which is likely to provide you with fewer returns and it is a possibility that your current investment may decrease in value. But again, nothing can be said for sure!

If still not convinced, see it this way that, if say you buy mStable worth a hundred dollars today, you will receive nearly 99.377 MUSD. According to the analysis done by experts on the field, after five years of your investment, the return is expected to be about +12.52 percent and thus, your current hundred dollar investment will be nearly 112.52 US dollars in 2026.

Source: TechCrunch

As mentioned at the very beginning, crypto is a highly volatile marketplace and is extremely uncertain. Thus, It is very important for you to understand the fact that just like any other currency in the crypto marketplace, mStable does have its own risks as well and you should invest only if you are willing to take those risks and bear any and all losses if at all necessary.

If you are wondering, where can you buy mStable USD? Let me help you with that. Currently, mStable is available on many crypto exchanges but, some of the popular exchanges that have MUSD listed on them include Coinbase Exchange as well as Hotbit to name a few, and hopefully, a lot more exchanges will have the token listed soon for even easier access. 

In conclusion, what are your thoughts on mStable USD? Do let us know in the comments below. To know more about various cryptocurrencies, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!

Also read: Wrapped LUNA Token: Everything you need to know