Another example of liquidity mining! Stablecoin aggregator protocol mStable announces liquidity mining and token issuance plan.

According to official sources, the stablecoin aggregation protocol mStable will launch the governance token Meta (MTA) liquidity mining and token issuance program through the decentralized liquidity protocol Balancer on July 15 at 10 PM Taiwan time.

Token Issuance Plan

In terms of token issuance, mStable will implement it directly through Balancer. Specifically, mStable will create a liquidity pool on Balancer and deposit approximately 2,666,666 MTA tokens (about 2.8% of the total supply) and an equivalent of $400,000 worth of stablecoin mUSD to kickstart. This means the initial price of MTA is $0.15, translating to a market value of only $15 million, the same valuation as the previous round of funding led by DACM, Three Arrows Capital, and Arthur0x on mStable.

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

META Liquidity Mining

mUSD is the stablecoin issued by mStable, which has experienced rapid growth since its launch, minting the equivalent of 18.5 million tokens in just 5 weeks. Users can directly mint mUSD by using stablecoins available in the market (such as USDT, USDC, Dai) through mStable's protocol. After obtaining mUSD, users can choose to hold it in mStable to earn high passive income (at the time of writing, the annualized return rate is about 23.73%), or use it to provide liquidity on Balancer for liquidity mining.

mStable's liquidity mining will take place in two Balancer pools: mUSD / USDC and mUSD / WETH. Simply by providing liquidity in these two pools, users can receive MTA as mining rewards, with the allocation based on the size of the funds.

Due to the boost from liquidity mining, the mUSD / USDC pool has become the largest liquidity pool in the Balancer protocol, with a total liquidity value exceeding $17 million at the time of writing.

MTA Token Outlook

As the governance token of mStable, MTA token holders can modify some core parameters of the protocol (such as protocol fees, supported assets, and liquidity rewards) through voting. In addition to governance functions, MTA can also be used as insurance fund auctions in the event of protocol vulnerabilities or black swan events to stabilize the value of mUSD, similar to how Maker's governance token MKR was auctioned off in March this year due to the sharp drop in the price of Ether.

COMP and BAL have gained attention in the market through liquidity mining, and platform adoption in the DeFi sector is rapidly growing. As all liquidity mining programs so far have had the highest initial returns, mStable is bound to become the next focus for savvy investors. Considering mStable's current adoption rate and market attention, there is still significant room for growth based on the current valuation.

The development of the price after the token issuance next week is highly anticipated, and relevant news will continue to be tracked.