Mars Ecosystem is a new decentralized Stablecoin paradigm, which solves the fundamental problem of Stablecoin Protocols (The Positive Externality Problem) by internalizing the positive externality: it integrates the creation and the use of stablecoin into one ecosystem. The relationship between Mars Stablecoin and Mars DeFi primitives constitute a positive feedback loop and generates flywheel effect. Mars Stablecoin’ s stability and liquidity is supported by the Mars Ecosystem Token (XMS) and the Mars Treasury. Mars Treasury is funded with multiple types of cryptos. Besides integrations with existing DeFi protocols, Mars Ecosystem builds Mars Swap, Mars Stableswap, Mars Money Market to deliver values to Mars Stablecoin users and XMS holders. XMS holders have governance rights and manages the mars Treasury. And XMS can be staked at DEX to earn part of transaction fees generated at DEX. Mars Swap is a Uniswap-type AMM DEX, which provides deep liquidity between Mars Stablecoin and all the other tokens.
What is the Mars ecosystem?
Mars Ecosystem’s vision is to build the central bank and reserve currency of the DeFi world.
Mars Ecosystem is an innovative stablecoin ecosystem characterized by novel economic mechanism designs that offers sustainable and high yields to its users. One example is Mars Farms – although its TVL has surpassed $350 Million, its APR is still more than 700%.
Besides, Mars Ecosystem won the BSC MVB III September Monthly Star. Being selected as a Monthly Star means that Mars ecosystem’s TVL, transaction volume, number of active users, community size and growth are among the highest protocols in the entire BSC.
More importantly, it means BSC recognized Mars Ecosystem’s security status, product innovation level, development activity, and community engagement. Projects will be selected and prioritized based on current TVL, daily and weekly active users, transaction volume, community size and growth, among other criteria.
Mars Ecosystem consists of three parts:
Mars Treasury, Mars Stablecoin and Mars DeFi protocols, which together form a positive feedback loop. Mars DeFi protocols consist of Marsswap and Mars Farm.
And more
Mars StableSwap and Mars yield aggregator will launch in Q4 2021. All of them will add unique value to the Mars Ecosystem and the Mars governance token.
Mars Ecosystem is now one of the hottest projects on BSC,and is expanding to other blockchains such as Ethereum and Solana. . It will become a solid foundation for the entire DeFi world.
#MarsEcosystem puts user benefits first.
After raising #CAKE rewards again on Oct.29th, Mars Ecosystem daily rewards to users are: 11500 CAKE + 260 #BNB + 0.25 #BTC + 3.5 #ETH =$370,000 USD per day
The cumulative rewards to users are $10.6 million USD
What is the XMS & USDM?
The USD stablecoin of the Mars Ecosystem is USD-Mars (USDM), and the governance token is Mars Ecosystem Token (XMS).
What is the core design of USDM?
Minting: USDM is generated through the minting mechanism. Users can get 1 USDM by placing $1 worth of any Mars Treasury whitelist assets into the Mars Treasury at any time.
Redeeming: USDM is destroyed through the redemption mechanism. Users receive $1 worth of Mars Ecosystem token (XMS) by returning 1 USDM into Mars Treasury at any time.
Mintage Control: The maximum circulating supply of USDM is determined & controlled by the market cap of XMS.
Every 3 minutes, the system calculates the average market cap of XMS over the prior 3 minutes and divides this average market cap by a parameter called the XMS Support Ratio. The support ratio is to be determined by the protocol governance. The number obtained defines the maximum USDM Supply Cap. In the next 3 minutes, users can only mint USDM up to this USDM Supply Cap.
For example, assuming that the average market cap of XMS in the past 3 minutes is 250 million USD and the XMS Support Ratio is 250%, then the USDM Supply Cap is 100 million. In the next 3 minutes, users can only mint USDM up to 100 million. If the current USDM circulating supply is 50 million, users can only mint 50 million new USDM at most as this would lead to the circulating supply of USDM to reach the USDM Supply Cap of 100 million.
Why is USDM price-stable?
The design mechanism of the Mars Ecosystem and the market behavior of users combined to ensure the price stability of the USDM.
When USDM market price > $1: Arbitrageurs can use $1 worth of the Mars Treasury whitelisted assets (such as BTC) to mint 1 USDM in the Mars Treasury. They can then sell the newly minted USDM in the market to make a profit. This arbitrage action will quickly bring the market price of USDM back to $1.
When USDM market price < $1: Arbitrageurs can buy 1 USDM in the market for less than $1 and then redeem it in the Mars Treasury to obtain $1 worth of XMS. The redeemed XMS can be sold in the market to make a profit. As long as XMS has sufficient liquidity in the market, this arbitrage action will quickly bring the market price of USDM back to $1.
Why XMS can efficiently capture the economic value of the protocol?
The value capture model of Mars Ecosystem's governance token XMS includes the following parts:
Mintage control mechanism.
Mars Treasury control rights value.
The transaction fees generated at the Mars DeFi protocols. When users trade on Mars DeFi protocols such as Mars Swap and Mars StableSwap, they will be charged transaction fees. Part of these transaction fees will be assigned to XMS holders.
