MMF Launches The StableScoin Swap With The $MUSD Token

In addition to a stablecoin swap and the Mad Meerkat ecosystem’s stablecoin, MUSD, the protocol is also launching a self-repaying loans platform.

April 16, 2022

Medium of Exchange Added Into MMF

Mad Meerkat Finance frequently launches new product offerings to enable their community and ecosystem to grow further.

The largest ecosystem on the Cronos network––announced on April 14––the launch of three products, a stableswap, an ecosystem stablecoin (MUSD), and a self-repaying loans platform that allows users to mint MUSD tokens using interest bearing tokens as collateral. The launch of the stableswap is done with the recognition that all networks need a stableswap pool to enhance capital efficiency through more efficient swaps between stablecoins and give better rates to arbitrageurs for better market liquidity.

“At MM Finance, we seek to be the number 1 DeFi ecosystem. To get there, a stablecoin swap is a necessary endeavour,” mentioned the ecosystem’s Medium blog about this announcement. “With a strong stablecoin ecosystem, we will be able to net huge trading fees which are largely used to form Protocol Owned Liquidity (POL) as per our whitepaper. This results in stronger and more stable pricing for our native $MMF token.”
Source: Mad Meerkat Medium

The stablecoin (MUSD) will be issued using a mechanism wherein the interest-bearing tokens (ibTokens) are used as collateral. Similar to the Anchor protocol, when a user deposits their assets, in this case, USDC/DAI/BTC/ETH/MMF/SVN tokens, on platforms like Mimas Finance and Tectonic, there will receive ibTokens. These tokens are received in the form of a receipt that can be redeemed for the initial collateral deposited. 

The introduction of the stablecoin will make two bullish cases for the MMF token:

  • It opens up the possibility of leveraged yield farming with MMF that applies buy pressure on the token. For users, this will enable them to enhance their APYs by significant numbers.
  • When more users will loan out their MMF and SVN into Mimas, they will be able to take out on the MUSD platform to get instant liquidity in the form of MUSD, thus improving the utility and hodl value of tokens like SVN and MMF in the MMF ecosystem.

Stableswap Supported by Cross-Chain Bridge

As previously reported by Web3Wire News, Mad Meerkat Finance launched a cross-chain bridge powered by Multichain on April 12. The bridge allows users to directly migrate assets from over twenty different blockchain networks into the Mad Meerkat ecosystem. This bridge will also enable the new stablecoin infrastructure that Mad Meerkat seems to be building. The protocol also introduced a self-repaying loan platform along with the stablecoin and stableswap platform.

“The aim of our platform is to take as low fees as possible on the loans, so that users can net faster gains, so as to promote heavier usage of Cronos ecosystem products — Tectonic, Mimas.” added the Medium blog. “This will create a flywheel effect where more capital enters into Cronos chain, and plenty of such liquidity will find its way into buying some of our favorite ecosystem tokens in MM Finance. With the collected fees, they will be redistributed to holders of the share token for this new platform — $BURROW holders.”

The loan platform will enable users to get a loan in MUSD that is self-paying by nature and gets paid overtime along with providing the users with net gains. The platform will be powered by the upcoming BURROW token. Holders of this token will receive dividends in MUSD that are generated by the platform. Eventually, BURROW is intended to be the governance token of this new loans platform. It will be a limited supply token with a unique utility as compared to usual money market platforms.

These developments combined will enhance the efficiency of capital flow within the Mad Meerkat ecosystem and also bring in new Decentralized Finance (DeFi) users from other blockchain networks and DeFi protocols alike.

What is Mad Meerkat:

MM Finance has one of the largest ecosystems in Cronos, offering a decentralized exchange, a yield optimizer, the Mad Meerkat NFTs, a project launchpad, and more. The platform is an automated market maker, and the exchange lies at the center of the ecosystem. MM Finance enables users to earn passive income by staking crypto assets in liquidity pools, with some yield farms earning up to 496% APR.

Find more about Mad Meerkat here:

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