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Risks & Considerations

  • Time-Lock Commitment: Once $STBL is locked for a chosen duration, it cannot be withdrawn until the lock expires. This enforces commitment but reduces short-term flexibility.

  • Parameter Adjustments: Core parameters such as emission rates, time-lock multipliers, USST coverage caps, and boost curves are tunable. Governance may update these values, which could change reward outcomes.

  • Anti-Gaming Measures: The system is designed to prevent unfair advantages, but risks remain from wallet splitting, timing attacks, or sybil behavior. Minimum lock requirements, cooldowns, and snapshotting are used to mitigate these.

  • USST Coverage Caps: A cap (θ) limits how much USST can be co-locked per unit of $STBL. This prevents whales from attaching excessive USST to small $STBL positions, but may reduce efficiency for some participants.

  • Systemic & Operational Risks: As with any on-chain protocol, there are risks from oracle failures, abnormal staking surges, or unforeseen bugs. Emergency pause mechanisms and rollback procedures are part of the framework.

  • Version Transition: MFS v1 is an interim framework based on fixed emissions. The full emission engine (bootstrap, staking-driven, terminal phases, and buybacks) will be introduced in future versions. Transition risks include changes to reward structures and new governance policies.