Our past Daily’s on Balancer and Compound highlight the memetic power of “yield farming” and “liquidity mining” within the defi ecosystem. mStable, a stablecoin liquidity and lending protocol, is another project that fits within this narrative. Users can deposit stablecoins into a stablecoin basket and receive a proportional amount of mUSD. mUSD can be redeemed 1:1 for any basket asset. As of writing, the total mUSD supply sits at 671,352.09.
In addition to a stablecoin pool supporting the native mUSD stablecoin, mStable has a ‘saving’ mechanism. Depositing mUSD into a saving’s contract allows one to earn a native APY. The APY derives from the interest accrued from lending assets on compound and aave, as well as trading fees. The historical APY is listed in the image below. The total mUSD supply in savings is currently 469, 395 mUSD.