PDP11: MIP-6: mBTC & Upgraded AMM

Posted by a representative of the mStable protocolDAO

In MIP-6, mStable Head of Research Onur Solmaz outlined the creation of mBTC and an analysis of an upgraded market maker, built to increase composability/optionality for mAssets and reduce gas cost.

Through a discussion on mStable's forum, certain parameters were discussed.

The mStable protocolDAO is proposing the creation of a new mAsset, mBTC, which unites various Bitcoin-backed ERC-20 tokens. Mints, redeems and swaps with bAssets are not 1:1, and instead determined by a new AMM-based design allowing for low slippage transactions and higher liquidity.

It is proposed that mBTC be created and deployed with the new AMM. A subsequent vote will be held to determine which underlying tokenised BTC options will be whitelisted as bAssets should this vote pass.

Further discussion is encouraged during the voting period as votes can be changed at any time prior to the vote closing, and voting is free (gasless).

Should mBTC with an upgraded AMM be deployed when it is ready?