M-Token Explained

Starting next week, all users who staked USDT or USDC assets at Merlin’s Seal will be issued $MUSDT and $MUSDC on Merlin Chain in their respective wallets. $MUSDT and $MUSDC are liquidity-staking tokens that can circulate within Merlin Chain but cannot be transferred out of Merlin Chain until they are migrated to $USDC or $USDT on Merlin Chain in April 2024. This article illustrates the key difference between $MUSDT/$MUSDC and $USDT/$USDC.

What is $MUSDT and $MUSDC?

$MUSDT and $MUSDC are both part of the M-Tokens created by Merlin as the liquid staking tokens after your staking at Merlin’s Seal (For more information on Merlin’s Seal, please refer to the official blog at https://medium.com/@merlinchaincrypto/merlins-seal-the-biggest-fair-launch-of-layer2-5614001b2582). The M-tokens are designed for seamless interaction with Merlin Chain’s eco-projects, maximizing your profit potential, while the original assets are locked up. Meson is proudly supporting the insurance of $MUSDT and $MUSDC, along with other professional partners.

1. Users deposit stablecoins into MPC wallets managed by Cobo and other professional partners through Merlin’s Seal’s bridges, and the assets in these MPC wallets will be locked up.
2. Based on the stablecoins staked to Merlin’s Seal, M-Tokens will be generated at 1:1 ratio on Merlin’s mainnet, such as $MUSDC/$USDT. For example, if user staked 1 USDT to Merlin’s Seal, he/she will receive 1 $MUSDT, if if user staked 1 USDC to Merlin’s Seal, he/she will receive 1 $MUSDC.
3. M-Tokens can be used to trade, provide DEX liquidity, or engage in DeFi protocols to generate extra profit.
4. M-Tokens cannot be transferred outside of the Merlin Chain, but they can be traded. If an M-Token is sold, the seller will still receive M-points (M-Points are the staking points awarded to the participants of Merlin SEAL, more details can be found at https://medium.com/@merlinchaincrypto/merlins-seal-the-biggest-fair-launch-of-layer2-5614001b2582) but will not be able to reclaim the original deposit, while the buyer can claim the original assets with the purchased M-Token.
5. Users will have the option to migrate their $MUSDT and $MUSDC to $USDT and $USDC on Merlin Chain in April. Please stay tuned to the official communication channels of Meson and Merlin, as we’ll announce the release migration plan once it’s finalized.

What is $USDT and $USDC?

Sometime in April, users will be able to migrate their $MUSDT and $MUSDC holdings to $USDT and $USDC on Merlin Chain, which is the circulating stablecoins on Merlin Chain that’s fully backed by USDT and USDC assets locked in MPC wallets managed by Cobo and its partners.

1. $USDT and $USDC are minted when users bridge USDT and USDC assets from other blockchains to Merlin via Meson. The original assets are sent directly to the MPC wallets managed by Cobo and other professional partners .
2. When users migrate from $MUSDT and $MUSDC to $USDT and $USDC, the original assets locked will be transferred to the MPC wallets managed by Cobo and other professional partners and serve as the collateral for $USDT and $USDC issued for the users.
3. The $USDT and $USDC can be utilized for trading or providing liquidity for DEX, or engaging in DeFi protocols to generate extra profit.
4. The $USDT and $USDC are free circulating stablecoins on Merlin Chain and can be bridged out to other blockchains on Meson.
5. Users can redeem their $MUSDT and $MUSDC to $USDT and $USDC on Merlin Chain in April, 2024. Please stay tuned to the official communication channels of Meson and Merlin, as we’ll announce the release migration plan once it’s finalized.

Stay tuned for our latest news and updates all on our social network:

Website: https://meson.fi Twitter: https://twitter.com/mesonfi Discord: https://discord.gg/meson Medium: https://medium.com/@mesonfi