Badger x mStable Vaults are Live
Oct 22, 2021
Following a successful guarded launch, we have now lifted the cap on our two newest partner vaults with mStable.
Vault depositors earn four layers of rewards:
- Vault Compounding Rewards which accrue directly to the LP token
- BADGER rewards, claimable immediately through the Badger app
- MTA rewards (mStable governance token), which vest after 6 months and will then be claimable through the Badger app
- mBTC Native Yield, auto-compounding interest from lending activities through the mStable Save Contract
mStable is a protocol that offers slippage-free swaps between stablecoins (and other pegged-value assets), lending and swapping into one robust and easy to use standard. The protocol was created to address three major problems:
- Significant fragmentation in same-peg crypto assets (there are currently at least 5 major USD pegged crypto assets on Ethereum, for example)
- Lack of yield in fiat currencies and pegged crypto assets
- Lack of protection against permanent capital loss in pegged crypto assets
mStable provides a solution to these three problems through the creation of meta-assets, which are fully backed by a diversified basket of existing tokenized same-base assets.
The Badger / mStable Partnership
In an environment where everything is open source and permissionless, it pays to employ a partner first approach when developing new products.
In addition to collaborating closely to develop the strategies powering these vaults, the two teams were able to facilitate the first ever DAO to DAO loan whereby Badger was given 510k MTA (mStable’s Governance Token).
What does this loan mean for Badger users?
As a result of the loan, Badger is able to maximize its boost position within the mStable app. This means that Badger will be earning, distributing, and auto-compounding the highest portion of rewards on their behalf, taking the gas intensive work out of the equation for users while maximizing returns.