Mustang (MUST)

Mustang Finance is based on the Liquity V2 model, adapting its redemption and interest-rate mechanics to Saga’s fast, low-cost EVM environment. Borrowers choose their own interest rates, which creates a market-driven system for managing redemption risk and influencing demand for MUST. When the token trades away from its intended $1 value, incentives for borrowers, redeemers, and liquidity providers are designed to pull the price back toward the peg.

The main use cases for MUST are borrowing against collateral, gaining leveraged exposure through automated “multiply” strategies, and earning yield by placing MUST in the protocol’s stability pool or external DeFi opportunities. The stability pool plays an important role in absorbing liquidations and supporting protocol solvency.

What distinguishes MUST from many stablecoins is its emphasis on permissionless redemption and crypto-only collateral. Holders are intended to be able to exchange MUST for underlying collateral through the protocol, while governance-directed liquidity incentives aim to support deeper markets across the Saga EVM network.