Mars Treasury

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:

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:

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