Whitelist mStable as Pool Creator

Summary

The mStable ProtocolDAO would like to add mStable's mAssets and interest-bearing assets into a dedicated Fuse pool of its own, allowing users to not only diversify underlying stablecoin collateral but also borrow against them with minimal added risk.

Background

mStable builds infrastructure to unify same-pegged assets, offering better yielding and risk-adjusted returns on them. It also offers various products such as a tokenised Savings account which has traditionally yielded between 10%-30% APY consistently without token incentives, mainly through swaps on its platform and lending.

Rari has been a great partner and has funneled users' capital into mStable Save through its Stable Pool, and has also included mStable's native token MTA in Fuse Pool 2. We believe there is potential to expand this collaboration with Rari, and bring higher capital efficiency to underlying assets with inbuilt diversification.

Integration with other protocols is an expanding focus of mStable, and hence, we would like to propose to whitelist the mStableDAO as a Pool Creator for Fuse to introduce an isolated lending market for its assets.

Motivation

We would love to initiate a further collaboration with Rari as a long-term funnel of deposits into mStable Save and interest from the community, as well as pave the way for further interactions together.

mStable's assets have the potential to be more capital efficient without significantly taking on more risk, thus providing an excellent market fit for Rari Fuse Pools.

Implementation

This pool will be unique as it will be an isolated lending pool focusing on mStable assets (mAssets), which are highly robust and stable, as they are fully backed (1:1) by underlying assets on-chain. Users can redeem mAssets for underlying assets at any time and do not rely on token incentives to back their mAssets, making them highly anti-fragile in both bull and bear markets.

Borrowing against mAssets is akin to borrowing a weighted basket of underlying assets.

mStable's interest-bearing assets (imAssets) have similar properties and have traditionally offered better yields - close to 3x higher - compared to cTokens and aTokens with diversification properties that some users have been keen on, e.g. censorship resistance, governance failure, peg failure.

Vote Details

FOR: Whitelist the mStable ProtocolDAO Multisig (0xF6FF1F7FCEB2cE6d26687EaaB5988b445d0b94a2) as a pool creator on the Rari Fuse platform.

AGAINST: do nothing.

Further Information

Link to Forum Post