DeFi Exchange mStable Mulls Over Acquisition, Merger Offers

MStable’s community will vote this month on whether to accept one of the offers or sunset its struggling stablecoin investments service.

AccessTimeIconMar 15, 2023 at 9:33 p.m. UTC
Updated May 9, 2023 at 4:10 a.m. UTC
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MStable’s community is going ahead with plans to vote on the future of its decentralized stablecoin investments service, which has hit a wall in recent months, according to the community’s latest proposal.

The project has three options: pursue a merger with another crypto project, greenlight its acquisition by another project or sunset its services entirely. Merger offers have come in from Spool DAO and Idle Finance, while DHEDGE and Origin Protocol are eyeing acquisitions of MStable.

A vote to shutter mStable, however, would kick-start a product shutdown to be completed by the end of April.

The most recent voting options are mStable’s last-ditch attempt to breathe new life into its struggling stablecoin exchange. In recent months the exchange has suffered several setbacks such as a lackluster user adoption rate, declining product revenue and the exodus of many of its leaders, including its co-founder.

Holders of mStable’s governance token will select which proposal to accept. An approved buyer will control MStable’s crypto assets and its technology, which includes its yield-generating stablecoin vaults, after a sale goes through.

The proposal will go to a vote on March 20, and the voting period will last for a period of five days.

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Elizabeth Napolitano

Elizabeth Napolitano was a news reporter at CoinDesk.


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