mStable · interactive mechanism simulation

Depositors mint mUSD 1:1 against a basket of stablecoins (bAssets), which route through Compound/Aave and SAVE for native yield. A per-asset weight cap should stop the basket from concentrating in one weak stablecoin — but arbitrage keeps pushing deposits toward whichever asset is cheapest, and the MTA staking backstop exists to recollateralize if a cap is breached anyway.
Minters deposit bAsset Basket vault (bAssets) USDC 25% · cap 25% mUSD (meta-asset) 1:1 minted / redeemed Compound / Aave bAssets lent for yield SAVE (imUSD) native APY 6.0% MTA staking backstop: 500 MTA Recollateralize & burn 0 mUSD burned
mUSD supply
0
Max basket weight
USDC 25%
SAVE yield accrued
0.0 mUSD
MTA backstop reserve
500 MTA
Mints blocked (cap hit)
0
Parameters — edit me
25%
20 bps
6.0%
1.6/s
Controls

Illustrative simulation. Mirrors the researched mStable design (1:1 basket minting, per-bAsset weight caps, SAVE routing collateral to Compound/Aave, MTA staking as recollateralization backstop) — deposit sizes, timing and the depeg scenario are simplified for visualization, not live onchain data. "Trigger bAsset depeg" replays the adverse-selection failure mode: arbitrage concentrates deposits in the weak asset until its cap freezes minting, then staked MTA is sold to buy & burn mUSD and restore the basket. Part of The Onchain Experiment Atlas.