Protocol Design

METASTABLE Protocol Design

Overview

METASTABLE, a project incubated by Aftermath, is a decentralized vault system deployed on the Sui network. The protocol enables users to deposit supported assets—bridged or native—and mint a stablecoin, mUSD, which is pegged to the US dollar. Users can utilize mUSD in AMMs, lending platforms, and other protocols while earning mPOINTS that may translate into future token rewards distributed via airdrops. Vaults also support lending out deposited assets for increased yield and capital efficiency.

Unlike a strict 1:1 minting model, METASTABLE relies on oracle-based exchange rates (e.g., Pyth price feeds) to determine the exchange rate between deposited assets and mUSD. With oracle feeds in place, the protocol can adapt to different price sources and handle a wide array of assets seamlessly. Using asset's exact on-chain exchange rate enables slippageless trades between assets supported by the vault, as opposed to slippage-prone, AMM counterparts.

Although METASTABLE currently focuses on USD-pegged stablecoins, its architecture has been designed modularly to allow extending the protocol with new meta coins. One could imagine a future where METASTABLE supports the creation of other meta coins, such as mBTC or mETH.

Goals

METASTABLE's primary goals are threefold:

1. Grow the adoption of our meta coins across the Sui ecosystem to aid in Sui's liquidity fragmentation problem — which will only continue to worsen through the addition of new bridges and wrapped liquidity,

2. Increase the protocol's decentralization through the addition of governance,

3. Bring yields back to early supporters and real users.

Conclusion

METASTABLE represents a robust and scalable stablecoin minting protocol, leveraging the security and performance of the Sui network. With its oracle-based exchange rates, composability, dynamic liquidity management, and extensibility, METASTABLE is well positioned to become a cornerstone of Sui's DeFi ecosystem. By enabling slippage-free trading between assets in the same vault and supporting multiple on-chain price feeds—such as Pyth for mUSD—the protocol ensures accurate, efficient, and flexible asset conversions for all participants.