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DeFi Saver Knowledge Base
  • Welcome to DeFi Saver Knowledge Base
  • General
    • What is DeFi Saver?
      • Boost & Repay
      • Smart Contracts
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      • Liquidity Sources of DeFi Saver
      • DeFi Saver Fees
    • Smart Wallets
      • Can I access DFS created positions using other apps?
      • Why did we switch to Safe?
    • Wallet Compatibility
    • Troubleshooting common issues
      • Error: "An issue was detected with this transaction that would cause it to fail" - what to do
      • How can I withdraw tokens from my Smart Wallet?
      • My MetaMask account is failing to load - what should I do?
      • My transaction is pending / not going through - what should I do?
      • I cannot make any transactions using DeFi Saver after using Furucombo?
      • Avoiding MEV with your transactions
  • Features
    • ETH Saver
      • How does ETH Saver work?
      • Profit tracking & how does it work
      • Positions in ETH Saver
      • Are there fees?
        • Are there any costs that are not immediately noticeable?
    • Automation
      • Automation strategies
      • Requirements for using Automation
      • Automation Fees
      • How does Automation work?
      • When are Automation transactions made?
      • Are there risks when using Automation?
    • Recipe Creator
      • What are Flash Loans?
      • Is Recipe Creator safe to use?
      • Pre-made recipes / Recipe Book
      • How can I reuse output of previous functions?
    • Loan Shifter
      • Collateral Swaps
      • Debt Swaps
    • Notify
      • Notification Monitors
      • How do I set up Notify?
    • Simulation Mode
    • Smart Savings
      • Overview of Yearn
      • Overview of Convex
      • Overview of mStable
      • Why is a smart wallet needed for using Smart Savings?
      • How to start lending funds and earning interest using Smart Savings?
      • Managing existing portfolios using Smart Savings
      • The difference between APR and APY
      • Are there any security risks?
    • Bridge
    • Exchange
      • What are Limit Orders?
      • What is DCA?
  • Protocols
    • Aave
      • Aave Dashboard
      • Aave versions comparison
      • How does Aave Automation work?
      • Can I manage my existing Aave lending/borrowing portfolio using the Aave dashboard?
      • What are Flash Loans?
      • How can I long or short assets using Aave?
      • Staking Aave tokens
      • How can I tell how much interest I will earn or have already earned using Aave?
      • How can I swap my collateral or debt in Aave?
      • Migrating your Aave position(s)
      • Pendle Principal Tokens (PTs) on Aave
    • CurveUSD
      • What is LLAMMA in CurveUSD?
      • How do you create a loan in CurveUSD protocol?
      • Does CurveUSD charge any fees?
      • Is there a standard (hard) liquidation in CurveUSD?
      • What are bands in CurveUSD?
      • Why do I need a Smart wallet for CurveUSD?
    • Compound
      • Compound Dashboard
      • Can I manage my existing Compound lending/borrowing portfolio using the Compound dashboard in DeFi S
      • How to earn and withdraw COMP tokens
      • How can I tell how much interest I will earn or have already earned using Compound?
    • Fluid
      • Intro to Fluid
      • Liquidity Layer
      • Lend Protocol
      • Vault Protocol
      • DEX Protocol
      • DeFi Saver-supported Features
    • Liquity
      • Liquity Dashboard walkthrough
      • What is a Trove?
      • Liquity Redemptions
      • How to stay protected from redemption risk in Liquity
      • How do Liquidations work in Liquity?
      • What are the key benefits of Liquity?
      • Does Liquity charge any fees?
      • What is a Stability Pool?
      • What is the "Debt-in-Front" value in Liquity?
      • How can I earn LQTY tokens?
      • Why do I need a Smart wallet for Liquity?
    • Liquity V2
      • Intro to BOLD
      • Borrowing Rates and Redemptions
      • Collateral Ratios
      • Troves as NFTs
      • Revenue Distribution and Forkanomics
      • LQTY Staking
      • DeFi Saver-supported Features
    • Chicken Bonds
    • MakerDAO
      • Managing the Dashboard
      • Automation options for MakerDAO
      • What is a CDP and why should I be interested in opening one?
      • How do Boost & Repay work?
      • How does CDP Automation work?
      • Can I transfer my MakerDAO Vault to a different address?
      • Can I manage MakerDAO Vaults created using other apps at DeFi Saver?
    • Morpho Blue
    • Reflexer
      • Reflexer Dashboard walkthrough
      • How can I start borrowing or leveraging using Reflexer?
      • What makes Reflexer unique?
    • Spark
      • Spark Dashboard walkthrough
      • What is sDAI?
      • Liquidations in Spark
  • Legal
    • Terms and Conditions
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  1. Features
  2. Smart Savings

Overview of mStable

One of the main products of mStable protocol is their mUSD stablecoin. mUSD is backed by a basket of other stablecoins (DAI, USDC, USDT, and sUSD).

There are 2 options for earning yield via mStable on DFS, and both of these include depositing DAI, USDC and/or USDT and receiving minted mUSD.

After getting mUSD, users can choose to deposit either to mStable’s Save contract to receive interest-bearing imUSD or to further stake imUSD into the Vault, which would allow them to earn additional MTA rewards. Here is the whole process:

  1. Deposit supported stablecoins: DAI, USDC, or USDT.

  2. mUSD is minted against the deposit. You'll receive more mUSD if you deposit an asset with a lower mUSD basket share than other assets, and vice versa.

  3. Deposit mUSD into the Save contract.

  4. imUSD is minted as the proof of deposit in the Save contract. imUSD is an interest-bearing token that earns interest from Compound/Aave and from swap fees generated on mStable, COMP/stkAAVE rewards are auto-compounded back in the Save contract.

  5. Stake imUSD into the Vault to receive MTA rewards (claimed manually on SS).

Withdrawals are available in all supported assets (you are not obligated to withdraw the assets you've initially deposited), those being DAI, USDC, USDT or mUSD. You will receive more if you withdraw/choose the asset with a higher mUSD basket share than the others (because of the pool rebalancing), and vice versa.

mStable has a 0.02% withdrawal fee applied only in case users are exiting mUSD (withdrawing a non-mUSD asset: DAI, USDC, or USDT). In case the withdraw asset is mUSD, there is no fee.

There is a vesting period for 4/5 of MTA rewards (26 weeks) while staking imUSD in the Vault. The other â…• is claimable immediately.

Deposit and withdraw restrictions: Each asset within the mUSD basket has a set of max and min weights. Currently, these are set to 5% and 50%. This means that no single asset could make up more than 50% of the basket nor less than 5%.

There is a very low risk of impermanent loss since all assets are used for lending on Compound/Aave. Furthermore, users are exposed to mUSD which represents an additional hedge from the de-pegging risk of underlying stablecoins, by being backed with a basket of different stable assets.

There is no performance fee.

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Last updated 1 year ago