Mu Bank
the bank of Mu. Controlled by the Mu DAO
The Mu Bank is the issuer of Mu Money.
Mu Money is an overcollateralized stable coin. It is an Algorithmic Crypto-overcollateralized stable coin. The Mu Bank can mint and burn Mu Money.
Mu Bank v1.6 (released as ERC20)
Released as a ECR20 Token so it's identified as Mu Bank. Also added reentrancy protection on all bonding functions and redeeming functions. Added whitelisting functions so only whitelisted addresses can use the Mu Bank.
https://snowtrace.io/address/0xA472Ed02182ED5B1C71D803d0Fed098F0C7C77A9
Minting Mu Money
Minting "new" Mu Money can happen in the following way.
Transactioanl Bonding - Transactional bonding is where a "bonder" wants to purchase a product or service offered by the Mu Ecosystem. Typically participants can pay for that product or service with Mu Gold ($MUG) our payment token. They would take their other crypto assets, like USDC and from our Liquidity Pool buy some Mu Coin ($MU) and then from our liquidity pool convert that Mu Coin ($MU) into Mu Gold ($MUG) and then use that Mu Gold to pay for the product or service. Or the participant instead can participate in "Transactional Bonding". Meaning they can basically get a "discount" and skip buying from our liquidity pools and use stable coins we are accepting like USDC, DAI, ect to directly "bond" $MU/$MUG at a discount from us. It should be noted they since they are intending to pay for a product or service, they would be giving the Mu Gold right back to the ecosystem in the form of payment, so the ecosystem, doesn't actually need to provide them with anything (other than the product or service they are buying) for their "transactional bond". This transactional bonding allows the Mu Bank to build up stable coin holdings in the Mu Reserves that it can use to issue Mu Money ($MUMO)
Bonding - Normal bonding is the Mu Bank selling a token in the Mu Ecosystem at a "discount" where the bonder actually will recieve the Mu token from the bank.
Liquidity Stabelization - This is a minting mechanism that allows the Mu Bank to mint Mu Money to trade in to the liquidity pools to keep the price of Mu Money pegged to 1 USD (stable coin version) in our various stable coin/Mu Money liquidity pools.
Mu Reserves
The Mu Bank holds the Mu Reserves which is the backing for Mu Money. The reserves are trasparent and will always be in greater value (overcollateralized) that the total circulating supply of Mu Money. The Mu Bank overcollateralizes Mu Money with the assets in it's reserves. The Mu Reserves holds the following form of assets.
Liquidity Pool tokens - the Mu Bank is the owner of Liquidity Pool tokens between Mu Money and other stable/exotic pairs (IE Mu Money/DAI, Mu Money/USDC, Mu Money/AVAX)
Stable Coins - the Mu Bank holds different stable coins (USDC, USDT, DAI, MIM, BUSD, ect) in it's reserves
Exotic Coins - the Mu Bank also holds exotic tokens (BTC, ETH, AVAX, ect) in it's reserves
Mu Tokens - The Mu Bank also holds Mu Tokens in it's reserves, however the Mu Bank does not count the value of these tokens in the overcollateralized mechanism.
Total Reserves
This is the total amount of reserves in the Mu Bank, including Mu Tokens.
Collateral Reserves
The total amount of of reserves minus the value of any Mu Tokens.
Although the Mu Tokens the Mu Bank holds in it's reserves have actual value and can be sold to the Liquidity Pools in the Mu Ecosystem, the Mu Bank does not consider the value of these tokens as "collateral" to avoid death sprials like we have seen with other projects (Luna, FTX, ect)
Last updated