Frequently Asked Questions about Mars Ecosystem #01
Hey Hitchhikers to Mars! 👨🚀 👩🚀 👨🚀
This past week has been of great and remarkable growth for the MARS community! We’d like to send a special welcome to all of the new members of the MARS community!
In May, we have held several AMA sessions with different communities around the world. During those sessions, a lot of excellent insights were squeezed about Mars Ecosystem’s progress, long-term vision, unique innovations, Mars tokenomics and others.
In case you missed the AMA sessions, we have summarized some of the most frequently asked questions during the sessions. Please find the below content for better understanding about Mars Ecosystem’s mechanism and development plan in 2021.
1. When was the idea behind Mars Ecosystem born, and what led to it?
John, the CEO and funder of Mars Ecosystem, is an avid fan and researcher of DeFi, who has not only studied a PhD in Finance at Stanford University, but also has many years of experience in the financial industry. After getting in touch with blockchain and DeFi years ago, John really appreciates the opportunities they bring to the financial industry and even to the whole world from a technical perspective.
In DeFi, he focuses on the field of Stablecoin, and has paid attention to and participated in many iconic Stablecoin projects since early stage. He discovered that various Stablecoin protocols face trade-offs in terms of price stability, degree of decentralization, and scalability. So after a lot of research and observation, John decided to bring a brand new decentralized Stablecoin paradigm to the DeFi world. Therefore, the idea of Mars Ecosystem was born.
2. What is the story behind Mars? Why did you name it “Mars” ?
In the merge of the “solar system/multi-planets” finance protocols (Luna, Mercurial, Venus, Saturn…), “Mars” is the most popular item with cultural backgrounds and technological fantasies. We tend to explore the financial interests of the DeFi users by attracting them to Mars Ecosystem through the science-fictional concepts and “meme” culture.
3. What is Mars Ecosystem main product and what make Mars different from others?
Mars Ecosystem consists of three parts: Mars Treasury, Mars Stablecoin and Mars DeFi protocols.
Mars Ecosystem has the following unique innovations:
-Treasury assets classification mechanism
-Mintage control mechanism
-Anti-”bank run” mechanism
-The integration of DeFi protocols and Stablecoin into the same system
All these innovations make Mars stand out from other Stablecoin protocols on the market.
4. Let’s talk tokens for a minute, why does Mars need a stable token, and what can you tell us about the TOKENOMICS of it?
Mars Ecosystem is a new decentralized Stablecoin paradigm. The main purpose of our project is to build the central bank and reserve currency of the DeFi world.
To achieve this goal, the Mars Ecosystem uses a two token system: The Stablecoin of the Mars Ecosystem is USD-Mars (USDM), and the governance token is Mars Ecosystem Token (XMS).
The Stablecoin USDM could serve the reserve currency of the DeFi world, as any token aimed to be the reserve currency has to be stable. The governance token XMS captures the value generated from the creation and circulation of USDM, and has a huge appreciation upside. The value capture model of Mars Ecosystem’s governance token XMS includes the following ways:
a. Mintage control mechanism. The mintage control mechanism ensures that the market value of XMS is at least 2.5 times the circulating supply of USDM. How strong is this value capture method? At present, the supply of DAI of the Maker protocol is 4.8 billion, and the market value of its governance token MKR is 3.7 billion USD. If the Maker protocol also uses the mintage control mechanism created by Mars Ecosystem, the market value of the MKR corresponding to 4.8 billion DAI will reach 12 billion USD.
b. Mars Treasury control rights value. XMS holders can control the Mars Treasury through protocol governance, which makes the market value of XMS at least twice the value of the assets in the Mars Treasury to prevent common 51% attacks.
c. The transaction fees generated at the Mars DeFi protocols. When users trade on Mars DeFi protocols such as Mars Swap and Mars StableSwap, they will be charged transaction fees, which are partly assigned to the liquidity provider and partly assigned to the protocol. The protocol assigns these fees to XMS stakers through repurchase and redistribution of XMS and other methods.
5. I’m a developer, and I’m interested in contributing to your project alongside earning. Do you have any Bug Bounty to check for vulnerabilities?
You are most welcome here in Mars Ecosystem! Once our smart contract is launched, we will cooperate with the best bug bounty agencies in the world and we will not begrudge the bounty.
At the same time, we also welcome experienced volunteers in other fields to join us and maintain community safety together! Anyone interested can contact us through firstname.lastname@example.org
6. Currently, many BSC projects are hacked, what protects Mars to ensure that my assets are invested in the platform?
Apparently, these projects are hacked because their developers are too careless and inexperienced, not because they are based on BSC. As Mars Ecosystem aims to build the central bank of DeFi world, we take the security of user assets above all else. Specifically, the user’s assets are protected by the following:
a. Most of the DeFi hacks are just repetitions of the old tricks and could have been avoided if the developers have fixed the bugs once the exploits happened in other DeFi protocols. Our developers are well aware of all the past DeFi hacks and are keeping track of all the new ones so that we know all the potential attack vectors and avoid them when developing our smart contracts.
b. Our smart contracts are audited by the best security auditors in the world: Certik and SlowMist. Our smart contracts won’t be launched until they pass all the audits with green light.
c. Bug bounty is very effective in finding bugs: Fei protocol’s bug bounty program recently discovered a bug that could have drained 600 million worth of ETH from Fei protocol’s treasury. Like i said before, we will not begrudge the bounty.
7. I heard that many investment institutions have already invested in Mars ecosystem. Can you tell us, so far, which institutions have invested?
Yes! Mars Ecosystem has received investment from many well-known funds, public chains and DeFi projects, which include: Continue Capital, YBB Foundation LTD., Kernel Ventures, Parallel Ventures, 7Star capital, Bella and Conflux. I also want to express our gratitude here for their trust and support to Mars Ecosystem!
8. A few days ago Luna’s stablecoin (UST) have decrease its price nearly 8%, which is a lot for a stablecoin. How can you balance the price of Mars Stablecoin?
Let me introduce our mechanism in detail, and then will explain how they ensure the price stability of USDM.
Treasury assets classification mechanism：The whitelisted assets accepted by the Mars Treasury are divided into the following levels: 1 Stablecoin 2 Digital gold (BTC) 3 Layer-1 leaders (ETH, BNB, etc.) 4 DeFi Blue Chips (UNI, AAVE, etc.) 5 Mars Ecosystem Token (XMS). The volatility of assets from level 1 to level 5 gradually increases.
Minting: USDM is generated through a minting mechanism. Users can get 1 USDM by placing $1 worth of Mars Treasury whitelist assets into the Mars Treasury at any time.
Redeeming: USDM is destroyed through the redemption mechanism. Users can always get 1 dollar worth of XMS by returning 1 USDM to Mars Treasury at any time.
Mintage Control: The maximum circulating supply of USDM is determined by the market cap of XMS.
And how can we deal with the extreme situations such as the large-scale sell-off of stablecoins in a short period of time? Our anti-”bank run” mechanism guaranteed by the asymmetry of minting and redeeming assets, which means that users place the Mars Treasury whitelisted assets into the Mars Treasury when minting USDM, and get XMS when redeeming USDM, so the assets submitted to the Mars Treasury during minting and the assets obtained when redeeming are different. The asymmetric design of Mars Ecosystem makes redeeming stablecoins as early as possible is no longer an optimal strategy for all users: users who redeem USDM early can have better liquidity when selling XMS than users who redeem USDM later. But all users who are eager to sell XMS must bear the slippage loss when trading on Mars Swap; because Mars Vault is the main provider of XMS liquidity, these slippage losses are captured by Mars Vault, and the amount of Mars Vault’s reserve assets is relatively The support multiple for the amount of USDM owned by the user will rise, so users who redeem or even not redeem at a later date can exchange the USDM in their hands for greater value. This anti-”bank run” mechanism prevents the agreement from returning to zero in the most extreme cases.
9. While you build your project, do you take into account community feedbacks and demands?
Yes, we value user’s feedback very much! In the later stage, we will establish a complete community user feedback system to let more users participate in the governance of the community and encourage users to participate in the community construction of the entire Mars ecosystem.
10. Today on how many social media platforms are you going to rock, how and where and can I join you?
You can join us in many channels! Currently we are on Twitter, Telegram, Discord and Medium. Official links are as follows:
Please join these groups and remember: Only trust information from these sources.