mStable Deprecates mUSD & imUSD – Minting Off, Withdrawals

Published: 2025-08-26 07:22:38 |

In March 2023, mStable confirmed the mUSD and imUSD deprecation initiative. This mUSD and imUSD deprecation halted new minting and shifted focus to streamlined withdrawals through a legacy support app. Existing holders can redeem underlying tokens and exit positions at any time. The move reflects mStable’s strategy to simplify its DeFi protocol and concentrate on growth areas with stronger ecosystem impact. By updating its legacy support app, mStable ensures a smooth redemption process and maintains user access to core assets while phasing out legacy yield aggregators.

Neutral

The deprecation of mUSD and imUSD is primarily a protocol streamlining measure rather than a market-moving event. Since minting has been disabled and existing holders can redeem at will, trading activity around these stablecoins is unlikely to spike. The action simplifies mStable’s DeFi suite, reducing complexity without undermining core assets. Similar deprecations in DeFi have had neutral market effects when legacy products are low-volume and well-supported post-deprecation. Short-term impact is minimal; long-term, the focus on growth areas could strengthen mStable’s ecosystem stability.