1/ mStable will launch its protocol token Meta (MTA) on @BalancerLabs at approximately 14:00 UTC on Wednesday, July 15th 2020.
Learn more: https://t.co/3Sy1A7YBCj
— mStable 🧮 (@mstable_) July 8, 2020
For those who missed it, mStable kicked off a liquidity mining program for seeding the mUSD/USDC Balancer pool. Now, less than two weeks after it’s launch, it’s currently the largest Balancer Pool, with nearly $17M in total liquidity at the time of writing.
What’s interesting to highlight is that mStable now has two attractive yield farming opportunities. Users can either lock mUSD via the mStable SAVE feature to earn an attractive APY (21.69% at the time of writing), or provide mUSD as liquidity to the Balancer pool in exchange for MTA liquidity mining.
The distribution of the native governance token is set to give the rising liquidity aggregator another leg up, quickly capitalizing on the latest trend of token distribution predominantly led by protocol usage.
As the protocol’s native governance token, MTA tokeholders vote on core protocol parameters like fees, supported assets, and liquidity rewards. In the spirit of decentralized governance, the mStable protocol will look to be incubated by its community, rather than driven entirely by the core team.
Outside of governance, MTA also acts as a line of insurance against and protocol deficits. To account for this risk, users who stake MTA via the upcoming EARN feature are eligible to share a pro-rata claim on trading fess along with the potential for governance incentives.
As if it wasn’t clear already, MTA’s distribution comes just after both COMP and BAL have seen widely successful distribution events, hence why the mUSD stablecoin pool is currently the biggest on Balancer to date.
For the hungry yield farmers out there, please keep in mind that mStable is the newest of these three protocols, and thus we expect the nascency to reflect this token generation event as such.
What’s to Know?
MTA will be seeded at its base price of $0.15/token – giving the token a fully diluted valuation of $15M at the time of issuance. Here’s a look at how the circulating supply is set to start and change in the coming year.
- Day 1 – 2.8% from liquidity mining
- 3 months (October 15th) — 11.0%
- 6 months (Jan 15th) — 18.2%
- 12 months (July 15th 2021) — 29.3%
This emission model is aimed at anticipating future growth, with liquidity mining rewards set to ramp up over the course of the year and slowly start scaling down come 2021.
The original post goes into further detail about the total supply, however, the key takeaway is that “no one in the mStable team will have access to tokens at the time of the pool’s creation.”
With this in mind, it’ll be quite interesting to see what type of price discovery emerges come to launch this time next week.
What to Expect
As we alluded to above, the yield farming based launch of MTA is sure to draw attention from DeFi token enthusiasts. Given the project has executed extremely well since it’s public launch less than two months ago, it’s no surprise many are quietly talking about MTA in closed circles.
To further iterate the above point, it will be interesting to see how something like MTA does given how new the protocol really is. As community members have pointed out, the reason why COMP was so successful was due to the protocol’s 2+ year track record of success long before COMP was ever introduced.
Now, looking at projects like mStable in the light of the DeFi bull market, it will be fascinating to see if MTA has the legs to make noise outside of the small (yet growing) yield farming sector that many have come to lay claim on.
Regardless, we’ll be keeping a close eye on this distribution event and look forward to participating in governance as a Meta Govenor in the coming months!
Cooper is the Editor of DeFi Rate and a contributor to leading DeFi outlets like the Defiant and Bankless. He is active in the DAO ecosystem through projects like MetaCartel and Raid Guild where he seeks to incubate governance models and grassroots community development. He is an ambassador of Set Protocol and the Director of Fitzner Blockchain Consulting where he authors a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.