Functionality

Deposits and Withdraws

Deposit

Users can mint a meta coin by deposit supported assets into a Meta Vault. Each Meta Vault enforces a deposit cap for each asset it supports as collateral. Deposit caps will be announced in advance on X (@MetaStables).

The amount of meta coin to mint for a deposit is derived from an on-chain price feed, enabling accurate price conversions between meta coins and their collateral.

Deposit Process

Below is an example deposit using mUSD as the meta coin:

1. The user provides a supported asset (e.g., native USDC) which is then deposited into the Vault's liquidity pool.

2. The deposited amount is converted to an equivalent amount of mUSD based on the on-chain oracle exchange rate.

3. mUSD is minted and issued to the user.

Withdraw

Users can burn a meta coin to withdraw assets from a Meta Vault. Assets will always remain withdrawable once deposited into a Meta Vault, ensuring liquidity cannot be trapped. Withdraws are subject to a dynamic withdraw fee described under Withdraw Fee.

Withdrawal Process

Below is an example withdrawal using mUSD as the meta coin:

1. The user provides mUSD which is then burned by the Meta Vault.

2. The amount of mUSD that was burned is converted into an equivalent amount of the desired output asset based on the oracle exchange rate.

3. A dynamic fee is applied, incentivizing a target distribution of liquidity within the vault.

4. The protocol subtracts the fee and returns the net asset amount to the user.