META (MTA) Governance Token | What is mStable? | mUSD Explained

good afternoon everyone welcome to my show   this one's going to be a little bit less hostile 
than yesterday crunch fitness we're going to be   talking about mStable and their MTA token Meta 
also their stablecoin mUSD and some other features   that they offer as well but first we'll just 
take a quick look at bitcoin we got a nice bounce   all the way down from 43k back up to almost 
50. so it looks like we're recovering a bit   doesn't really matter to me either way i'll 
make things happen regardless which way the   price is going but it's always nice when you 
see it going up so m stable what is mStable   the way they describe themselves is a collection 
of autonomous decentralized and non-custodial   smart contracts built on ethereum so 
what does this mean in layman's terms   it means that there isn't any 
third party that you have to trust   like you do when you hold stable coins like tether 
usdc etc this is all completely trustless and done   through smart contracts nobody else is holding 
your funds nobody else can freeze your funds   you don't need to trust any mStable was created 
to address three major problems that confront   pegged crypto asset users significant 
fragmentation and same peg crypto assets   in other words there are many stable coins right 
now you've got usdc usdt tusd susd DAI etc etc   there are actually more than that the second 
problem they aim to address is a lack of yield   in fiat currencies and pegged crypto assets in 
other words if you're holding for example tether   you're not getting any interest on that money 
and you're subjected to the same inflation   that you're subjected to if you hold the 
us dollar so holding tether is like almost   worse than holding us dollars and as 
we all know last year alone in 2020   what was it 25 of the entire us dollar 
supply was printed in that year alone   so if you're holding something like 
tether you're actually being devalued   massively as they print money and lack of 
protection against permanent capital loss   and pegged crypto assets what 
does that mean in layman's terms   it means that when some tether FUD comes out one 
of these days it's going to be true maybe maybe   it's not tether maybe it's another stable coin 
that it happens to either way one of those coins   goes to zero and you're holding it you're done for 
you just lost all your money with mStable they   aim to solve that problem i'll explain how in a 
second then they go on to say that their mAssets   like mUSD their stable coin etc they are minted 
with mStable contracts which are non-custodial   in other words the way it works is you deposit 
some stable coin into the mStable contract   and that stable coin stays in that contract goes 
into a pool and they the contract mints an asset   for you for example mUSD so if you want their 
stable coin musd you just deposit some tether   or another stable coin into the contract and then 
the contract creates that stable coin for you by   minting it this is all non-custodial and trustless 
it's not like tether where there's a third party   this is all done on smart contracts the code is 
open source basically they can't steal your money   from you then they go on to say m assets 
are fully backed by a basket of existing   tokenized same base assets in other words 
the way it works with their mUSD stable coin   is it's backed by a basket of other stable 
coins which are centralized like tether usdc susd and tusd so these are the collateral 
that back their musd stablecoin   so basically the risk of musd going to zero 
is far less than holding one of these other   coins right because if you're holding for example 
tether and some tether FUD comes out they say they   don't have all the assets to back it up let's say 
tether goes to zero well if you're holding tether   you just went to zero you lost all 
your money but if you're holding musd   25 of that is backed by tether and then 
you have three other stable coins in the   basket that are backing it as collateral so if 
some tether flood comes out and tether goes to   zero in this situation you still have three other 
assets to make up for 75 percent of your holdings   so there's only a 25 percent risk there that you 
take so you actually only took a 25 percent loss   by holding musd whereas withholding tether 
you would have taken a 100 percent loss   but it's actually even better than that 
you don't even take that 25 percent loss   because they have their governance token mta 
and one of the features of that governance token   is re-collateralization of their m assets in 
the event that a loss like this happens to put   it more simply tether goes to zero mta gets put 
where tether was and it's like you lost nothing   part of their mta token supply is allocated 
specifically towards something like this happening   so in the event that something goes wrong with one 
of the assets that are backing their stablecoin   mta comes in and saves the day and then your musd 
is still worth a dollar like it was supposed to be   they currently also offer another mAsset which 
would be mBTC that's an mAsset consisting   of tokenized bitcoin works in the same way 
the musd does but if i understand correctly   i would guess that it's 
backed by a wrapped bitcoin   or else i'm not really sure how it 
would work on an ethereum smart contract   yeah they say right here the functionality 
of other m assets is the same as musd   so in the event that whatever is collateralizing 
that mbtc was to fail the same thing would happen   they would use their mta governance token to 
re-collateralize it and save you from losing a   lot of money possible future m assets m eth and m 
gold those don't exist yet obviously so we won't   go into detail but the possibility is there in 
the future and then as far as yield goes which   we talked about earlier they have saved version 
2 launched right now so they have imusd here   which would be interest bearing musd so i 
guess basically what you do there is you   just take your musd stable coin you deposit 
it into this contract and you earn 23.33 apy   as passive income just for holding it in the 
contract and apparently right now part of this   save version 2 program that they have 
going on is 12k mta are also weakly applied   to this interest here and then i guess 
that gets split up among the whole pool   so not only do you get the 23.33 apy in terms of 
musd you also get some of their governance token   minted as a reward so you're earning their stable 
coin and you're earning their governance token   speaking of their governance token what meta 
governors can determine by holding the mta token   parameters of the bonding curve these parameters 
dictate how fast the slippage will increase   as the basket starts to diverge from an equal 
weight distribution the maximum and minimum   weights of each b asset b assets would be the 
basket that backs their m assets as collateral   so a b asset would be something like tether   wrapped bitcoin the other stable coins in the 
basket like usdc any new b assets that are added   should they be deemed secure and stable by the 
governors conversely a b asset can be removed   should the meta governors consider it too risky 
for inclusion in a basket in other words let's   say they want to add die to this list of 
stable coins right here that backs the musd   governors can vote to add die to 
this basket as collateral and also   if they say hey you know what screw this tether 
man ted is no good we don't want it in here we   don't think it's safe they can vote to just get 
rid of tether altogether and not allow people   to deposit it into the contract anymore they can 
also determine the percentage of fees incurred   when someone swaps or redeems one of their 
m assets so this is truly decentralized   everything's done through smart contracts like 
i said before and the people holding the mta   governance token can determine a lot of what 
goes on in this platform and then they also have   other ways you can earn here by depositing into 
their uniswap balancer or curve liquidity pools   currently mta token is sitting at two dollars and 
three cents its all-time high at the end of august   was eleven dollars and three cents however only 
about 20 of the supply is circulating right now   i don't know how much of that was circulating 
in august so you might need to adjust for that   when you determine what the all-time high 
was and i believe that the rest of the supply   will be slowly rolled out over time throughout 
yield in these saving contracts here   like the imusd one that i mentioned before   by depositing in liquidity pools and things 
like that so i don't think there's going to   be any major amount of mta that just all of a 
sudden gets dropped on the market i think this   slowly happens over time as adoption increases 
so it should all balance itself out over time   and i still think the price has potential to 
reach its all-time high and beyond the market   cap right now is only 37 million dollars and i see 
a lot of value in this especially the stable coin   because i know if we were about to enter a 
bear market and let's say i wanted to cash   out a lot of my earnings from the bull market 
you know maybe i made millions of dollars and   i just want to wait it out till the next bull 
run i want to slowly accumulate throughout the   bear market well you're not going to catch me 
holding tether or usdc for the next three years   so i think i would definitely hold their 
stablecoin musd throughout a bear market i would   feel way more comfortable doing that than i would 
holding tether i could tell you that for a fact   and i think there's probably a lot of 
people out there who would feel the same way   dye is a good stable coin but they've had 
problems keeping their peg for the past year   and realistically die could be added as collateral 
in this stable coin anyway which would make it   even more secure than die itself i have to make 
the usual disclaimers here i do hold the mta token   so if the price goes up i will make money so do 
your own research this is not financial advice   if you enjoyed the video feel free to 
smash the like button and subscribe   it helps the channel and it helps youtube to 
show the video to as many people as possible   if there's anything i missed or got wrong please 
leave a comment in the comment section below and   let me know if there's any other coins you want 
me to look into i take requests for coin reviews   that's all i got for today thanks for 
watching see you next time peace out

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