Mars Ecosystem
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  • Mars Ecosystem: Decentralized Stablecoin Ecosystem
  • Whitepaper
    • Introduction
    • Mars Treasury
    • Minting / Redeeming / Mintage Control
    • USDm Price Stability
    • Mars DeFi protocols
    • Mars Ecosystem Token
    • MarsDAO
    • Mars NFT
    • Genesis
  • Others
    • Tokenomics
    • Audits
    • Bug Bounty
    • Investors
    • What is Mars Ecosystem’s roadmap?
    • Captain Program
  • General FAQ
    • About
    • How to Buy
      • Metamask
      • Binance Chain Wallet
      • Safepal
      • TokenPocket
      • BitKeep Wallet
    • Farms/Pools
      • Pool: Cake
      • Pool: XMS
      • Farm: XMS-BNB
      • Farm: Cake lp token
      • Withdraw your rewards
    • How to participate in a Genesis event
  • DEVELOPER
    • Contract Adresses
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  • Source of Treasury assets
  • Treasury assets classification mechanism
  • Use of Treasury assets

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  1. Whitepaper

Mars Treasury

PreviousIntroductionNextMinting / Redeeming / Mintage Control

Last updated 3 years ago

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The USD stablecoin of the Mars Ecosystem is USD-Mars (USDm), and the governance token is Mars Ecosystem Token (XMS).

Source of Treasury assets

USDm is generated and destroyed through the minting and redemption mechanisms implemented. Users deposit their assets into Mars Treasury when minting USDm, they deposit USDm to recieve assets from the Mars Treasury. Both minting and redemption are always at a 1:1 ratio when the Mars Treasury is utilized.

Treasury assets classification mechanism

The Treasury mechanism is not an invention of Mars Ecosystem: the treasury reserve of the Terra protocol is its governance token LUNA, the treasury reserve of the Frax protocol is USDC and its governance token FXS, and the treasury reserve of the Fei protocol is ETH.

The unique aspect of the Mars Ecosystem is the implementation of a treasury assets classification mechanism.

When minting USDm, users need to place $1 worth of any Mars Treasury whitelist assets into the Mars Treasury. The whitelisted assets accepted by the Mars Treasury are divided into the following levels:

Stablecoin

Digital gold (BTC)

Layer-1 leaders (ETH, BNB, etc.)

DeFi Blue Chips (UNI, AAVE, etc.)

Mars Ecosystem Token (XMS)

The volatility of assets from level 1 to level 5 gradually increases. Mars Treasury determines the maximum acceptable proportion of various assets in the Treasury according to the volatility of each assets. The greater the volatility of the asset, the lower the maximum acceptable proportion within the Treasury.

Use of Treasury assets

Mars Treasury assets have the following use cases:

Value support: Mars Treasury assets are the ultimate support for the value of both USDm and XMS.

Liquidity provision: Mars Treasury uses most of its assets to provide liquidity for USDm on Mars Swap to support the stability of USDm.

Yield-accrual: Idle assets of Mars Treasury yield earning from the Mars Ecosystem DeFi protocols or other external DeFi protocols.

External DeFi governance: Mars Ecosystem uses external DeFi protocols governance tokens in the Mars Treasury to participate in their governance to vote on proposals that are beneficial to the Mars Ecosystem.

Grants: Some assets are used to fund the development of protocols Dapps that can promote the wide adoption and use of USDm.

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