Main St Token Ecosystem Overview
Main St's flagship token system delivers institutional-grade returns through a sophisticated staking model while maintaining a soft dollar peg for simplified accounting.
Key Features
Main St transforms complex delta-neutral trading into a simple dual-token system where yield is earned through staking:
msUSD: The base token that maintains a soft dollar peg
smsUSD: The staking token that accrues yield when users stake their msUSD
Proof of Reserves & Transparency
Main St sets a higher standard for stablecoin transparency through continuous, cryptographically verifiable attestation of assets backing msUSD.
Live Balance Attestation
Unlike traditional stablecoins that rely on infrequent, opaque attestation reports, Main St integrates with Deribit's Proof of Reserves (PoR) system to provide:
Daily Updates: Real-time visibility into collateral balances with daily cryptographic snapshots
Verifiable Inclusion: Independent confirmation of our holdings through Deribit's public PoR data
Trust-Minimized Verification: Third-party validation without accessing our internal account data
How Verification Works
Deribit Daily Snapshots: Each day, Deribit publishes cryptographically signed snapshots containing anonymized balance data for all accounts
Main St Proof Publication: We publish verifiable proofs including digital signatures and proof IDs that can be independently validated
Open-Source Verification: Anyone can use our public verification tools to confirm our collateral coverage matches our transparency dashboard
Why This Matters
This framework transforms stablecoin transparency from a marketing promise to a verifiable fact, enabling users to conduct meaningful due diligence on our collateral claims in real-time.
Access Our Transparency Tools:
Live Collateral Balances: https://mainstreet.finance/transparency
Verify Proof of Reserves: https://mainstreet.finance/transparency/por
GitHub Repository: Open-source verification scripts and tools
Asset Backing
Each msUSD is fully collateralized by a diversified portfolio deployed in sophisticated delta-neutral strategies:
USDC: Stablecoin component providing baseline stability
Large-cap cryptocurrencies: Primarily Bitcoin (BTC) and Ethereum (ETH), selected for their deep liquidity in both spot and options markets
Additional assets: May include other liquid cryptocurrencies with established options markets based on market conditions and strategy optimization
The specific allocation between these collateral types will vary based on prevailing market conditions and strategy requirements.
Yield Mechanism
Returns primarily flow from options arbitrage with supplementary strategies when needed:
Options Volatility Arbitrage utilizing sophisticated options trading strategies primarily executed on Deribit
Derivatives Yield from perpetual futures positions (utilized when options strategies reach capacity)
DeFi Optimization through on-chain liquidity pools (deployed selectively when primary strategies are fully utilized)
Yield Distribution through the staking mechanism (smsUSD)
Access & Flexibility
KYC-verified users can mint and redeem msUSD at a rate of 1 USDC to 0.998 msUSD (reflecting the 0.2% fee which covers costs of getting in and out of positions) subject to coverage ratio. After minting, users can stake their msUSD to receive smsUSD and begin earning yield.
The LayerZero integration enables seamless cross-chain movement with optimized paths between Sonic and Ethereum.
Actual yields fluctuate based on prevailing market funding rates.
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