What you can expect from Mars Ecosystem in December

3 min readDec 8, 2021

In the past week, we have seen a lot of unfounded panic about XMS and USDm in the community. These panics stem from many new users’ ignorance and lack of confidence in the mechanisms of XMS and USDm.

The users’ panic focused on the following points:

1) The price floor of USDm is guaranteed by the redemption mechanism of USDm. The redemption mechanism relies on XMS, and XMS seems uncertain, so the price of USDm could fall below $1. Based on this logic, many users sell USDm at a price lower than $1.
2) If the price of USDm falls below $1, when the USDm redemption mechanism is turned on after the Genesis period, the user will redeem USDm into XMS, which will generate selling pressure on XMS, so it seems that the price of XMS has no support. Nevertheless, many users continue to sell XMS based on this logic.
3) The supply of USDm is gradually increasing, and they dilute the rewards for XMS. Therefore, USDm does not seem to have any value-added to XMS. Therefore, the price of XMS will continue to fall as the supply of USDm increases. Many users continue to sell XMS based on this logic.

We are committed to building a solid ecosystem to empower both XMS and USDm, and here are a few things you can expect for the next few weeks:

1. XMS deflation:

We will launch a GameFi platform and an innovative Yield Aggregator. The IHOs of both projects will be held on Mars, and XMS will be accepted. All XMS raised from these IHOs will be BURNT. XMS will be in deflation soon. Further details will be disclosed later.

2. USDm use case & stability:

1) USDm use case:

We are negotiating cooperation with many DEX, lending protocols and other DeFi protocols, and we will announce them soon.

For example, Pledge Finance, a promising lending platform backed by many silicon valley venture capitalists, will support USDm as collateral.

2) USDm stability:

a. Mars Treasury will continue to only accept stablecoins like BUSD to mint USDm, and will not accept other assets with any volatility. Therefore, all the circulating USDm is currently supported by BUSD of the same value in Mars Treasury. This measure ensures that each USDm is worth 1 USD.

b. After the Genesis period, the redemption mechanism of USDm will not be turned on, and the Mars Treasury will use its stablecoin reserves to directly support the stability of USDm. When the price of USDm is significantly lower than $1 for a long time, the Mars Treasury will use its stablecoin reserves to buy back USDm.