Genesis Complete

3 min readDec 21, 2021

Mars Stablecoin Genesis started on November 21, 13:00 UTC, and will complete on December 22, 13:00 UTC.

During the 30 days of Genesis, three Genesis Events were held. Users have deposited 23,873,753 BUSD into Mars Treasury and minted 23,878,385 USDm in total. Please note that since the minting cost of 1 USDm is equal to 1 USD, and the price of BUSD in Genesis Events was slightly higher than 1 USD, the amount of USDm minted was slightly higher than the amount of BUSD deposited in the Mars Treasury.

Users who participated in Genesis and minted USDm have enjoyed super-high APR through Stake USDm Earn XMS, BTCB, ETH, BNB, and CAKE pools.

After the first Genesis Event ended, all of the 4,998,584 BUSD deposited in the Mars Treasury was used to provide liquidity for the USDm-BUSD trading pair on MarsSwap. Please note that Mars Treasury has minted 5,000,000 USDm to pair with these BUSD to provide liquidity for the USDm-BUSD trading pair. These USDm controlled by Mars Treasury are only for market-making purposes and will be automatically burned when the liquidity is removed.

So there are currently 28,878,385 USDm in circulation. Users can understand through simple logic that all the circulating USDm in the users’ hands are currently fully backed by BUSD of the same value in Mars Treasury. More precisely, since the current USDm market price is less than 1 USD, the USDm held by the users is over-backed by the BUSD in the Mars Treasury.

A circulating supply of over 23 million is not bad for a stablecoin that has just been launched for one month, but honestly, USDm and XMS have encountered many challenges in the past month. We have therefore adjusted the pace of Genesis events and reduced the amount of USDm minted to provide XMS with more value support after Genesis.

More modules will be open

After genesis complete, the following modules will be opened:

1. USDm minting

Users can get 1 USDm by placing $1 worth of BUSD into the Mars Treasury at any time. However, when the mintage control module is on, the maximum circulating supply of USDm is determined by the market cap of XMS. This means that if the price of XMS is too low, users will not be able to mint USDm.

2. USDm mintage control

Every 3 minutes, the system calculates the average market cap of XMS over the prior 3 minutes and divides this average market cap by a parameter called the XMS Support Ratio. This number represents the USDm supply that XMS can provide enough support to and hence sets the upper limit of “Users-owned USDm”.

In addition to “Users-owned USDm”, the Mars Treasury also mints and controls some USDm in order to provide liquidity for USDm. These USDm are called “Treasury-owned USDm”.

To be precise, the maximum USDm that a user can mint satisfies the following formula:

USDm circulating supply (after mint) <= USDm Supply Cap

Where

USDm Supply Cap = XMS average market cap in the last 3 minutes / XMS Support Ratio + Treasury-owned USDm

For example, assuming that the average market cap of XMS in the past 3 minutes is 250 million USD, the XMS Support Ratio is 250%, and the Treasury-owned USDm is 5 million, then the USDm Supply Cap is 105 million. In the next 3 minutes, users can only mint USDm up to 100 million. If the current USDm circulating supply is 50 million, users can only mint 50 million new USDm at most as this would lead to the circulating supply of USDm to reach the USDm Supply Cap of 105 million.

After 3 minutes, if the average market cap of XMS over the prior 3 minutes is 275 million USD, the USDm Supply Cap will be 115 million, and the maximum circulating supply of USDm increases.