Lambos with mUSD: Get the best stablecoin interest rates with Meta Protocol

Estimated read time 5 min read

Are you ready for the highest stablecoin interest rates season that’s about to come on Arbitrum? 

We’re referring to the launch of Arbitrum’s first yield-bearing stablecoin, mUSD.

mUSD is about to unlock new possibilities by offering high yields and allowing the ability to help you plug into other DeFi opportunities. 

In a nutshell:

mUSD works on the same mechanism as other liquid staking derivatives tokens, but it’s even better. 

Here’s how:

How mUSD is better than LSD

mUSD works on the same principles as Liquid Staking Derivatives, as in you have to stake a rather illiquid token to get a representative token that functions on other DeFi protocols while also accruing you yield rewards on autopilot. 

mUSD works the same.

You have to stake the GLP token of the GMX protocol, the largest DEX on Arbitrum by TVL, amassing over $600 million worth of assets.

[Image Source: DeFi Llama]

As a result of depositing $GLP, you get to mint the mUSD stablecoins while also getting APY as high as 20% on our stablecoin holding. 

Like Liquid Staking Derivatives, the muSD stablecoin can be used with other Arbitrum-native DeFi protocols like money markets and liquid staking pools. 

Insider info: After the $mUSD launch, we will partner with Curve Finance to give the community an mUSD <> 2Pool stablecoin liquidity pool. 


mUSD doesn’t have any locking periods as opposed to Liquid Staking Derivates protocols, where in some cases, you have to wait for a period to unstake your tokens. Rather, you can instantly withdraw GLP tokens from the MetaProtocol whenever you want.

How’s mUSD going to provide the best stablecoin interest rates in the whole space

Simply mint the mUSD tokens and hold them to generate a steady APY of 20%+.

mUSD tokens are overcollateralized by GLP, the native token of the GMX protocol.

GMX shares 70% of its trading fees with GLP holders.

And since GMX has maintained its TVL over a long period and has had enough trading volume on its platform, it has consistently offered GLP holders an average APY of 20%.

Here’s a screenshot of the median APY over the past six months: 

[Image credit: DeFiLlama]

When you deposit your GLP tokens in the MetaProtocol to mint the mUSD tokens, the yields on your GLP token arrive every week.

A graph showing total trading fees generated by the GMX protocol each week of this year:

[Image source: DeFi Llama]

This yield, which is paid out in ETH, is then converted to mUSD tokens by the MetaProtocol based on the price of ETH at that time. This income is shared proportionally among the mUSD holders, with an average APR of 20%. 

That’s how MetaProtocol will be able to give out a high yield to mUSD holders.

Part of this yield is given out to META holders, another token underpinning the Meta Protocol.

The META Token and the IDO

When Lybra Finance, another yield-bearing stablecoin platform on Ethereum, launched its LDR token in its IDO, 5% of the LDR’s total supply dedicated to the IDO got sold out in just 48 hours. Since then, the tokens have soared 40%, reaching a price of $0.14 per token as of May 29, 2023.

Meta Protocol’s IDO launch is expected to mimic similar success seeing the increasing demand for yield-bearing stablecoin.

The $META token IDO will happen on July 17th, 2023.

META is an ERC-20 token that will be used for governance, voting, staking, minting, and issuing liquidators’ rewards. 

5% of META’s total supply, i.e., 5 million $META tokens, will be issued at a minimum rate of $0.16/META.

You can participate in Meta Protocol’s quest to get whitelisted for the IDO. 

The whitelisted users get an extra 20% META tokens for the same amount of money. 

Say, if you buy $1 ETH worth of $META, you’ll get $1.2 ETH worth of META in your wallet.  

Here’s a step-by-step follow-along guide to getting whitelisted for the IDO

Quora Version

Arbitrum’s first yield-bearing stablecoin, mUSD, is launching soon. It lets you stake GLP tokens from the GMX protocol, the largest DEX on Arbitrum, and mint mUSD stablecoins that earn up to 20% APY. You can also use mUSD with other Arbitrum DeFi protocols like Curve Finance, which will have an mUSD <> USDT pool. Unlike other liquid staking derivatives, mUSD has no lockup periods, and you can withdraw GLP anytime.

Mint mUSD tokens by staking GLP from GMX protocol and earn ~20% APY. mUSD tokens are backed by GLP, which shares 70% of GMX trading fees. You get weekly yields in ETH, which are converted to mUSD. Some of this yield goes to META holders, another token of Meta Protocol. META token IDO will happen on July ##, 2023. META is an ERC-20 token for governance, voting, staking, minting, and liquidator rewards. 5% of META’s total supply will be issued at $0.16/META. You can join Meta Protocol’s whitelist for the IDO and get an extra 20% META tokens. Here’s how you do it!


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