There’s two ways that you can farm yields with mStable:
- Saving your mUSD in their SAVE product
- Providing liquidity on their Balancer pools
Step 1 : Getting mUSD
There’s two ways that you can get mUSD:
- Minting it
- Buying it
Choose which assets you would like to use (DAI, USDC, TUSD, USDT)
Deposit the amount you would like and this will be converted at a 1:1 ratio
Example : Depositing 1000 USDT will get you 1000 mUSD
Note : you’ll need to approve before being able to mint
Since gas costs are high, you can also buy mUSD from the Balancer pools
You can purchase mUSD using either USDC or ETH
https://balancer.exchange/#/swap/0xe2f2a5c287993345a840db3b0845fbc70f5935a5 and select if you want to purchase using ETH or USDC
- Click on SWAP and you’ll get mUSD once the transaction is confirmed. Note, you’ll need to unlock before you can swap
Step 2 : Saving your mUSD
- Head on over to https://app.mstable.org/save
- Current average daily APY over the past 7 days is 36.5%
- Input your deposit amount and click deposit
Step 3 : Withdrawing your savings
- All you need to do after is to go back to https://app.mstable.org/save and click on withdraw instead
- Once the transaction is confirmed, you get back your mUSD
Step 4 : Redeeming your mUSD
- Go to https://app.mstable.org/redeem
- Input the amount of mUSD you want to redeem (meaning you want to convert back into the other 4 stablecoins: TUSD, DAI, USDC, USDT)
- If you wish to withdraw in a specific stablecoin, toggle off the redeem with all assets button and select
- After the transaction is complete, you’ll be done!
mStable is currently giving out MTA as rewards for liquidity providers in these 3 Balancer pools:
- 50/50 mUSD / USDC
50,000 MTA shared per week + BAL Rewards
Currently has ~40m in liquidity
https://yieldfarming.info/mstable/usdc/ (~38.5% APY)
- 50/50 mUSD / WETH
- 50,000 MTA shared per week.
- Currently has ~18.5m in liquidity
- https://yieldfarming.info/mstable/weth/ (~84.90% APY)
20/80 mUSD / MTA
50,000 MTA shared per week + BAL Rewards
Currently has ~11m in liquidity
https://yieldfarming.info/mstable/mta/ (~195.04% APY)
Note : These reward amount will change but for now this is what’s set for the last week of July
https://medium.com/mstable/a-recap-of-mta-rewards-9729356a66dd/. Rewards are also dependent on price risk. musd/usdc pool is relatively stable as it should maintain a 1:1 peg, other pools have impermanent losses.
Pro tip : To calculate impermanent loss, you can use this: https://baller.netlify.app/
According to this, if $MTA changes by 100%, you will have an impermanent loss of 3.27%
Adding Liquidity for Pool 3 (mUSD/MTA)
- Since the APY for pool 3 (mUSD/MTA) is higher, we will go with that.
- First step is getting the assets that you need which is mUSD and MTA.
- As mentioned above, you can get mUSD by buying it from https://balancer.exchange/#/swap/0xe2f2a5c287993345a840db3b0845fbc70f5935a5 or minting it from https://app.mstable.org/mint
- After getting mUSD, go to https://pools.balancer.exchange/#/pool/0x003a70265a3662342010823bEA15Dc84C6f7eD54 click on add liquidity and then single asset
- Once this transaction confirms, you’ll receive BPT. This will be your share of the pool that you can redeem for your assets.
- Note : the steps for this can be repeated for the other 3 pools, if you do not have USDC or ETH. Providing single asset liquidity is the same as buying the amount that you need for the pool. For example if I deposit 1000 mUSD as a single asset, 20% (200 mUSD) will be used to buy MTA and be added to the pool.
- If you have USDC/ETH/MTA you can go to all pool assets and input the amounts you wish to deposit, note that they must follow the ratios that are determined!
Removing Liquidity for Pool 3 (mUSD/MTA)
- To remove liquidity, go back to the pool address : https://pools.balancer.exchange/#/pool/0x003a70265a3662342010823bEA15Dc84C6f7eD54
- Click remove liquidity. You can withdraw in either mUSD or MTA or 20% mUSD and 80% MTA.
- Currently rewards for this week are set to be 50,000 MTA per pool but this may change next week with the release of their EARN product.
- Each pool provider gets both MTA and BAL tokens.