Summary
Objective Labs recommends integrating MetaMask USD (mUSD) into Euler Yield as both a collateral-enabled and borrowable asset. mUSD is positioned to become one of the most widely adopted stablecoins due to its native integration into MetaMask, the world’s leading self-custodial wallet. Onboarding mUSD strengthens Euler Yield’s stablecoin market, enhances collateral diversity, and positions the protocol to capture new user flows from MetaMask’s global ecosystem.
Fundamentals
MetaMask USD (mUSD) is a fiat-backed stablecoin issued by Bridge, a regulated subsidiary of Stripe, and is designed to be natively integrated into the MetaMask wallet. It is fully collateralized on a 1:1 basis with cash and U.S. Treasuries, ensuring a high-quality and liquid reserve backing. The minting process allows users to convert fiat into mUSD directly within MetaMask through bank transfers, card payments, and other supported on-ramp services. Redemption works in the opposite direction, enabling holders to convert mUSD back into fiat via MetaMask’s off-ramp partners. The token is powered by M0, a decentralized stablecoin infrastructure that facilitates issuance, redemption, and cross-chain liquidity. Initially launching on Ethereum and Linea in 2025, mUSD will be seamlessly embedded into the MetaMask wallet for swaps, bridging, and DeFi interactions, with future expansion into real-world payments through the MetaMask Card in partnership with Mastercard.
Risk Parameters
Caps
| Asset |
Supply Cap |
Borrow Cap |
| mUSD |
5M |
4.5M |
IRM
| Market |
Asset |
Base Rate |
Kink (%) |
Rate @ Kink |
Rate @ 100% (Max) |
| Euler Yield |
mUSD |
5% |
90% |
10% |
20% |
LLTVs
| ↓ Collateral / Debt → |
mUSD |
USDC |
USDT |
PYUSD |
RLUSD |
wM |
USDe |
USDtb |
rUSD |
AUSD |
frxUSD |
USD1 |
| mUSD |
|
0.92 |
0.92 |
0.92 |
0.92 |
0.92 |
0.92 |
0.92 |
0.92 |
0.89 |
0.89 |
0.89 |
| USDC |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
| USDT |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
| PYUSD |
0.90 |
|
|
|
|
|
|
|
|
|
|
|
| RLUSD |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
| wM |
0.90 |
|
|
|
|
|
|
|
|
|
|
|
| USD0++ |
0.87 |
|
|
|
|
|
|
|
|
|
|
|
| USDe |
0.87 |
|
|
|
|
|
|
|
|
|
|
|
| sUSDe |
0.87 |
|
|
|
|
|
|
|
|
|
|
|
| eUSDe |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
| USDtb |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
| syrupUSDC |
0.89 |
|
|
|
|
|
|
|
|
|
|
|
| PT-cUSDO-20NOV2025 |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
| PT-USDe-25SEP2025 |
0.87 |
|
|
|
|
|
|
|
|
|
|
|
| PT-sUSDE-25SEP2025 |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
| PT-tUSDe-25SEP2025 |
0.84 |
|
|
|
|
|
|
|
|
|
|
|
| PT-pUSDe-16OCT2025 |
0.84 |
|
|
|
|
|
|
|
|
|
|
|
| AUSD |
0.90 |
|
|
|
|
|
|
|
|
|
|
|
| frxUSD |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
| sfrxUSD |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
| USD1 |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
| TBILL |
0.95 |
|
|
|
|
|
|
|
|
|
|
|
| PT-USDe-27NOV2025 |
0.87 |
|
|
|
|
|
|
|
|
|
|
|
| PT-sUSDe-27NOV2025 |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
Oracle
| Asset |
Oracle |
Methodology |
| mUSD |
Fixed 1:1 |
Fundamental |
1 Like
Gauntlet supports onboarding mUSD to Euler Yield with conservative parameters, considering its early stage of development. We align with Objective Labs’ recommended caps, IRMs, and LLTVs.
mUSD is a promising integration asset for Euler Yield, but due to its limited on-chain track record, we recommend utilizing a conservative approach and monitoring user adoption over the coming weeks before increasing caps. We believe that Objective Labs’ recommendations are in line with this approach.