Last updated: Jun 25, 2022
Mars Ecosystem is a decentralized stablecoin ecosystem built on the BNB Chain with the ultimate goal of becoming a central bank and reserve currency of the DeFi world. The Protocol consists of the following three parts where the native stablecoin is integrated into all components: Mars Treasury, Mars Stablecoin, and Mars DeFi protocols.
Mars ecosystem claims to be a platform, which satisfies the most common needs of the decentralized stablecoin protocols like high price stability, high degree of decentralization, and high scalability through the following mechanisms: treasury assets classification, mintage control, anti-” bank run”, and integration of DeFi protocols and stablecoin into the same system.
Mars treasury makes use of the following two token systems: the stablecoin of the Mars Ecosystem USD-Mars (USDM), and the governance token Mars Ecosystem Token (XMS).
The purpose of Mars Treasury is to support the value of USDM and XMS, provide liquidity for USDM, earn yield from the Mars Ecosystem DeFi protocols or other external DeFi protocols, as well as to govern the protocol, and fund other dApps, which adopt USDm.
USDm is created through a minting mechanism by depositing $1 worth of any Mars Treasury whitelisted assets into the Mars Treasury at a 1:1 ratio. USDM is destroyed through redemption, under which users receive $1 worth of Mars Ecosystem token (XMS) by returning 1 USDM into the Mars Treasury. In other words, when minting USDM, the XMS used is burned and when redeeming USDM, new XMS tokens are minted.
The whitelisted assets accepted by the Mars Treasury are classified into the following levels with the gradual increase of volatility from level one to level five: stablecoins, layer-1 leaders (ETH, BNB, etc.), DeFi Blue Chips (UNI, AAVE, etc.), Mars Ecosystem Token (XMS).
Based on each asset’s volatility, Mars Treasury defines the maximum acceptable proportion of various assets in the Treasury, and the higher the volatility of the asset, the lower the maximum acceptable proportion in the Treasury.
The maximum circulating supply of USDM is adjusted in accordance with the market cap of XMS. The Mars ecosystem’s mintage control system ensures that the market cap of XMS is at least 2.5 times higher than the circulating supply of USDM. Therefore, even if XMS’s price drops by 50%, the market cap of XMS can serve as a guarantee that USDM will be repaid at its $1 value in full.
Mars Treasury uses the stablecoin reserves to maintain the stability of USDm, so if the price of USDm is getting lower than $1 for a prolonged period of time, the Treasury will use its stablecoins to buy back USDm.
The Mars DeFi protocols include such services as Mars Swap, and Farms & Pools, where USDm is the medium of exchange and store of value.
Mars Swap is an Automated Market-Maker DEX. The transaction fee on Mars Swap is 0.3%, where 0.25% is assigned to liquidity providers and 0.05% to XMS stakers.
Another DeFi component of the Mars Ecosystem is Farms & Pools, which are aimed to incentivize liquidity providers. Users can stake CAKE and XMS to pools and earn XMS. Liquidity providers can benefit from the Mars Ecosystem farms by earning mining rewards which include MarsSwap LP tokens and PancakeSwap LP tokens.
To start using any DeFi tool available on the Mars Ecosystem, a wallet has to be connected first. One also should have some BNB to pay the gas fee. Mars Ecosystem wallet support includes Metamask, Trust Wallet, TokenPocket, Binance Chain Wallet, and others.
The main page of the Mars Ecosystem app reflects the tabs with various options. For trading tokens, the user needs to choose the Swap tab, then choose the token pair to be traded and confirm the transaction. A 0.3% Mars Ecosystem fee is charged on all trades. Liquidity can be added in the corresponding section on the main menu. When providing liquidity, the deposited tokens automatically earn fees proportional to the share of the pool and can be redeemed at any time.
When navigating to the Farm section, the user will first see the table showing the options available for farming and their APR. The user needs to choose the pair and the number of LP tokens to be deposited, and then confirm the operation. After confirmation, XMS earned will be displayed.
To earn rewards from staking, it is necessary to go to the Pools section, where various options with the net annual percentage of remuneration will be displayed. Users need to choose the number of tokens to be staked and confirm the transaction.
XMS is the Mars Ecosystem’s native governance token. XMS’s Total Supply is 1 Billion and it is distributed as follows: community Incentives - 65%, treasury - 15%, team - 10%, investors - 8%, and IDO – 2%.
XMS has an important role in the minting control mechanism as it should always be maintained at a level of at least 2.5 higher than the circulating supply of USDM, XMS holders earn rewards as part of transaction fees generated on the Mars Stablecoin DEX is captured by XMS. XMS holders can manage the Mars Treasury through the protocol governance.
The Mars Ecosystem XMS token can be purchased on centralized exchanges like Binance and BKEX, Hoo.com.
The Mars Ecosystem XMS token can be purchased on decentralized exchanges like PancakeSwap.
It is up to you where to buy the XMS token. It is worth taking into account that decentralized exchanges allow you to do this anonymously, you do not need to pass KYC procedures to use them, on the other hand the cost of transactions may be higher than on centralized exchanges, while there is a risk of your funds being held by the exchange.
To understand if Mars Ecosystem is a good investment and try to make an XMS price prediction, you need to do your own research on the project.
All the data for research is available on the project page on our website: check out the technical features of the project in this review, try to use the app, see if the information about the team is available and the team is open for communication, and using the project dashboard and the XMS price chart, assess the project usage rates as well as the token price movement and the number of its holders.
Mars ecosystem runs a Bug Bounty program through Immunefi, offering up to $60,000 as a reward. All contracts are open-source on GitHub and can be reviewed by the community at any time.
The Mars Ecosystem team keeps its anonymity and claims that it includes various experts with solid finance, and blockchain technology backgrounds. The CEO and Founder of Mars Ecosystem presents himself as Mr. John and claims to hold a Ph.D. in Finance from Stanford University and to have extensive experience in the financial industry.
Mars Ecosystem has raised $2 million worth of investments from a number of funds, DeFi projects, and public chains such as Continue Capital, YBB Foundation LTD., Kernel Ventures, Parallel Ventures, 7Star capital, Bella, and Conflux.
Mars Team has reached a strategic partnership with several major launchpads, such as LaunchZone, Helmet.insure, Bella Protocol, and BakerySwap.
Mars Ecosystem has recently partnered with Metaverse Miner, a GameFi, and NFT ecosystem with a plan of cooperation at both product and community levels. Other important partnerships were made with Alpaca Finance, Fortube, HELMET, Kalata, and Celestial, expanding Pools & Farms options for users.
According to Mars Ecosystem’s 2022 roadmap, it is planned to launch an innovative yield aggregator, which will be cross-chain, integrate USDm with more BSC projects, as well as integrate more platforms, which will improve the capital efficiency of existing liquidity mining programs. Another strategic plan is to launch Mars StableSwap and establish partnerships with more projects.
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