{"id":6095,"date":"2021-11-26T18:15:31","date_gmt":"2021-11-26T16:15:31","guid":{"rendered":"https:\/\/godex.io\/blog\/?p=6095"},"modified":"2021-11-26T18:15:31","modified_gmt":"2021-11-26T16:15:31","slug":"what-is-the-mta-token-mstable-governance-token-overview","status":"publish","type":"post","link":"https:\/\/godex.io\/blog\/what-is-the-mta-token-mstable-governance-token-overview","title":{"rendered":"What the MTA token? mStable Governance Token Overview"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_25_1 counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><label for=\"item\" aria-label=\"Table of Content\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/label><input type=\"checkbox\" id=\"item\"><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/godex.io\/blog\/what-is-the-mta-token-mstable-governance-token-overview\/#what_is_mstable\" title=\"What is mStable?\">What is mStable?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/godex.io\/blog\/what-is-the-mta-token-mstable-governance-token-overview\/#how_mstable_works\" title=\"How mStable works\">How mStable works<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/godex.io\/blog\/what-is-the-mta-token-mstable-governance-token-overview\/#mta_token_is_used_for\" title=\"MTA token is used for\">MTA token is used for<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/godex.io\/blog\/what-is-the-mta-token-mstable-governance-token-overview\/#how_to_obtain_mta\" title=\"How to obtain MTA?\">How to obtain MTA?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/godex.io\/blog\/what-is-the-mta-token-mstable-governance-token-overview\/#meta_mta_functions\" title=\"Meta (MTA) Functions\">Meta (MTA) Functions<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/godex.io\/blog\/what-is-the-mta-token-mstable-governance-token-overview\/#summary\" title=\"Summary\">Summary<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">Due to the fact that the MTA token is quite young, not many have heard of its existence, and even more so few people know what it is and how it can be used. I hope this article will help you figure it out. Built on the <a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/godex.io\/coin\/eth\">Ethereum<\/a> blockchain, Meta (<a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/www.coingecko.com\/en\/coins\/meta\">MTA<\/a>) is now a token of the mStable platform. Its central function is to coordinate decentralized governance. This means that every MTA owner who stakes their tokens becomes part of the mStable governance. Such governors can vote, suggest their ideas and join discussions. In general, they actively contribute to the sStable platform, make sure that the safety of this protocol remains for all times and get rewards for this.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Today\u2019s MTA price is $1.14 and it is ranked at #809 according to CoinMarketCap, with a market cap of $19 808 347.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what_is_mstable\"><\/span><span style=\"font-weight: 400;\">What is mStable?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">mStable is a decentralized universal platform allowing lending, swapping and saving. It is aimed to help create a decentralized economy that is better in security and usability than the sum of its parts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As the result of stablecoins and other tokenized assets unity, mStable assets, called mAssets, are created. mAssets are pegged to unique assets they represent, such as cryptocurrency, commodities, fiat currency, and alike. There are three main functions for mStable assets: mint, swap and save.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The main instrument of the platform is the mStable USD token (MUSD). It is a stablecoin pegged to the dollar exchange rate and designed to unite cryptocurrencies and the traditional financial system. There are already several such stablecoins, for example, Tether (USDT) and TrueUSD (TUSD).<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"how_mstable_works\"><\/span><span style=\"font-weight: 400;\">How mStable works<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The users with mUSD can use the advantages of the mAsset platform like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">staking their mUSD and earning yield from trade commissions and landing (mStable use decentralized markets such as Compound and Aave to lend assets and generate yield);<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">using zero slippage stablecoins swaps, which is possible thanks to a straight line bonding curve between, for instance, mUSD and another asset; mStable guarantees that every token equals one to one at face value. Thus, a user can deposit a stable coin such as USDT, TUSD, USDC, or sUSD, and mStable will split up the mUSD token. So, the whole idea is that 1 mUSD is always equal to 1 USDT which is equal to 1 TUSD and so on.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">owing an mUSD saving account;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">guaranteed insurance if a stablecoin lost its peg. Let\u2019s see how it can be done from the following example.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In the case of, let\u2019s say, USDT blows up, because the market finds out that there is only one dollar for every 10 tethres that get created. It would mean that the system is in a 33% shortfall. This is where the mStable governance token comes in. In a case of a shortfall the mStable protocol will mint more mStable tokens and then sell them on the open market to pay back the debt that was created.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"mta_token_is_used_for\"><\/span><span style=\"font-weight: 400;\">MTA token is used for<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Basically, there are three words that can outline the MTA token jurisdiction:<\/span><\/p>\n<p><b>1 ) governance;\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Users that stake their MTA become the part or the mStable governance, which means that they can change or add parameters to the protocol.<\/span><\/p>\n<p><b>2) yield<\/b><span style=\"font-weight: 400;\">;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">MTA governors get earnings in return for their work.<\/span><\/p>\n<p><b>3) re-collateralization<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In case any mAsset loses its peg, users will sell their MTA to redeem the lost value.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"how_to_obtain_mta\"><\/span><span style=\"font-weight: 400;\">How to obtain MTA?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">MTA can be bought on any decent exchange such as Huobi Global, FTX, Gate.io, ZT, Bitribe and WBF Exchange.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unlike other major cryptocurrencies, it cannot be bought directly with fiat money. However, you can still easily buy this coin by first purchasing Bitcoin on any exchanger with fiat currency and then transferring it to an exchange that supports the BTC\/MTA pair.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Also, when you stake MTA you\u2019ve got and provide liquidity for mStable and other assets on Balancer, then you can earn mStable and Balancer tokens.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"meta_mta_functions\"><\/span><span style=\"font-weight: 400;\">Meta (MTA) Functions<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are three major functions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">acting as a source of protocol re-collateralization in the event of a peg loss;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">coordination of decentralized governance;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">stimulating the bootstrapping of mStable asset liquidity, utility and government community, and receiving rewards for this work.<\/span><\/li>\n<\/ul>\n<p><b>Re-collateralization function<\/b><\/p>\n<p><span style=\"font-weight: 400;\">mStable strives to create assets that are safer and more powerful than the sum of their parts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Presently, most pooled stablecoins exacerbate risks for liquidity providers (LPs). If an underlying stablecoin loses its peg forever, users have an incentive to completely fill the pool with that stablecoin, buy back anything of value, and ultimately take all the value out of the pool, leaving LP with nothing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">mStable is working to take control of this risk or create a risk limitation mechanism. In this case, if the collateralized asset loses its peg forever, mStable will be able to clear the asset and restore the lost value by selling the MTA for the outstanding mStable asset.<\/span><\/p>\n<p><b>Governance function<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Governance plays a key role in the development of mStable. To become one of the governors one should \u201clock up\u201d their MTA tokens. It will bring profit and empower one to influence the platform&#8217;s functionality by voting for or against the implementation of proposals. This may concern the addition\/removal of mStable assets and basket assets and their maximum weight, swap commission and other parameters of the platform;<\/span><\/p>\n<p><b>Encouragement through rewards<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Much of the MTA supply will be channeled through the ecosystem and other rewards to incentivize resource providers to launch the mining of mStable assets, and to fund their liquidity and utility.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">mAssets holders are able to get rewards from three sources of income:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MTA yield farming rewards<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Swap fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lending return<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"summary\"><\/span><span style=\"font-weight: 400;\">Summary<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Being a relatively young phenomenon, we can say that the topic of mStable protocol has not yet been fully disclosed and much remains to be learned. Some people are skeptical about mStable\u2019s idea of a 1:1 ratio, as tokens don\u2019t always have to be worth $1. However, they cannot deny that mStable is truly a standalone stablecoin infrastructure with a unique governance and reward system. Moreover, it solves several problems among which are counterparty risk and fragmentation, and tries to protect its users from losing their capital. Therefore, given the above features, we can conclude that mStable is indeed different from other stablecoin pools. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Table of Contents What is mStable?How mStable worksMTA token is used forHow to obtain MTA?Meta (MTA) FunctionsSummary Due to the fact that the MTA token is quite young, not many have heard of its existence, and even more so few people know what it is and how it can be used. I hope this article [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":6096,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1871,1873],"tags":[108,1838,117,505,812],"yst_prominent_words":[],"class_list":["post-6095","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-market","category-guides","tag-bitcoin","tag-crypto-coins","tag-crypto-exchange","tag-cryptocurrency","tag-ethereum"],"lang":"en","translations":{"en":6095},"pll_sync_post":[],"_links":{"self":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts\/6095","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/comments?post=6095"}],"version-history":[{"count":3,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts\/6095\/revisions"}],"predecessor-version":[{"id":6106,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts\/6095\/revisions\/6106"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/media\/6096"}],"wp:attachment":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/media?parent=6095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/categories?post=6095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/tags?post=6095"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/yst_prominent_words?post=6095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}