MUSD: The Stable Token Sitting Quietly Under the Whole System

In any ecosystem, people enjoy discussing the "exciting" token. The one you can trade around the clock with a million opinions attached, the one that pumps, the one that burns, and the one that moves. The dull one is MUSD, and that's sort of the point. You need something dull for a dual token model. Something that acts as a steady anchor so that the rest of the system can function without bringing risk management, accounting, and settlement into the same chaotic pool as trading activity.

Therefore, structure is essentially what we mean when we discuss MUSD stable token design. Not a lot of hype. Not "utility" in the nebulous sense of marketing. real limits. Actual accounting separation. Real settlement reasoning. Indeed, it is fixed at a 1:1 ratio to USDT. However, it's not "just USDT with a different name." It has a specific function as a controlled entry asset for market making and as a settlement currency for MUSD.

Let's discuss what that means, how it works with the dual token model for MUSD, and why the system makes a special effort to avoid using USDT directly.

What Is MUSD ?

Not a Trading Coin, but a Steady Anchor

Within the market-making layer, the MUSD is positioned as a stable unit of account. It has the stability required for pool accounting and clean settlement because it is pegged 1:1 to USDT.

The key, though, is that MUSD's limited use is intentional.

MUSD is not currently positioned as a general trading medium. It is employed for:

• Staking in a market-making pool (entry)
• settlement of market-making revenue (internal settlement logic)

That's all. This settlement asset resembles a certificate. An instrument under control. The platform purposefully prevents it from turning into "just another tradeable stable" because doing so invites all sorts of cross-contamination between operational finance and trading behavior.

Boundaries Are Central to the MUSD Token Structure

The MUSD token structure can be summed up in one sentence as follows:

The purpose of MUSD is to prevent online trading funds and market-making funds from having the same bloodstream.

USDT is used for trading funds. Funds used for market making are in MUSD. The platform can prevent systemic risk from intersecting funding paths because they are managed independently.

It's not a purely aesthetic separation. The MUSD economic design is just getting started.

The Dual Token Configuration: MQT for Value Capture, MUSD for Stability

Only when each token is assigned a task it can truly perform will a dual token model be effective.

MUSD deals with settlement and stability. MQT uses use-burn-buyback mechanics to manage commissions, incentives, participation, and value capture.

The MUSD ecosystem's role is based on that division; it exists to maintain the system's legibility, not to "grow."

To make this clearer, here’s a simple role breakdown.

• Asset's Main Function and Location in the System
• Things Not Employed For MUSD
• Settlement voucher + stable anchor Market-making pool entry and settlement layer
• Medium for general trading (by current positioning)
• USDTCapital tradingConversions and the trading sideAccounting for market-making (directly)
• MQT Rewards + Commission Offset + GovernanceDistribution of rewards and utility scenariosAnchor for stable settlement

In practice, this is essentially the MUSD dual token model: one asset maintains its cleanliness and stability while the other asset carries the flexible economics.

How Market Making Participation Operates? (Entry Asset: MUSD)

First, Change USDT to MUSD

You use the Smart Market to convert USDT into MUSD prior to engaging in market making.

This path is two-way:

• MUSD ↔ USDT (low fees, two-way)
• There is a fixed fee of 1 USDT included in MUSD → USDT.
• You can then pledge MUSD to join the market-making pool once you have it.

Because staking, reinvestment, and redemption are all in MUSD, the market-making books remain consistent, despite the flow being straightforward.

This is a more functional version of the participation flow.

• Stage: User Activities; Notes and Fees
• Convert USDT to MUSD in Smart Market MUSDSupport for two-way conversion
• Stake MUSD into the market-making pool MUSD Entry requirement for market-making
• MQT Paid in accordance with platform regulations
• Redeem Redemption is available at any time. Withdraw stake and return MUSD.
• Exit to trading funds: Convert MUSD to USDT; fixed fee: 1 USDT

In its current form, the MUSD utility framework is a controlled asset for entry, accounting, and settlement.

After You Stake MUSD, Where Does MQT Fit In?

The platform issues the following after users pledge MUSD into the market-making pool:

• Commissions for market-making

In accordance with the platform's regulations, agent commission incentives are given out in MQT.

Then, users have multiple options for using MQT:

• Commissions can be offset by MQT. Peer-to-peer trading is possible in the UID Market. In the Smart Market, it can be exchanged for USDT (with a 10% commission, of which 5% is burned and 5% is invested in a fund pool). In situations like NFTs, guilds, and governance, it can also be applied to rights and voting.

Additionally, MQT's ability to capture value in a use-burn-buyback cycle is made possible by the ongoing operation of burns and fund pools.

Thus, to put it simply:

• The stable infrastructure layer is MUSD.
• The economic engine layer is called MQT.
• The system doesn't ask MUSD to do everything because of this. It maintains MUSD clean, limited, and stable.

Why Not Make Markets Using USDT Directly?

Although people tend to skip over this section, it is the main goal of introducing a settlement asset such as MUSD.

Direct use of USDT results in mixing:

• liquidity flows on the trading side
• Market-making reserves
• Hedging actions

settlement accounting—within the same pool logic and unit.

Additionally, it is more difficult to isolate risk when short-term volatility occurs. Reading net positions gets more difficult. Clean daily settlement gets more difficult but MUSD was created to prevent that.

Stratification of Accounting and Risk Control

All market-making books have the same MUSD value. This facilitates the independent accounting for:

net risk.

reserves for net income

The ledger is cleaner. Not flawless, not magical, but cleaner—and in the context of financial infrastructure, "cleaner" frequently means the difference between a system that grows and one that breaks down due to its own intricacy.

Separation of Stable Liquidity

The system prevents short-term trading disruptions from affecting market-making activities because trading funds (USDT) and market-making funds (MUSD) are kept apart. By using the same matching and hedging pools, it lowers the tail risk. Stated differently, it keeps a hectic trading day from becoming an operational settlement stress test.

The Function of the MUSD Settlement Currency in Day-to-Day Activities

Many projects use the term "settlement token" as if it were a badge. However, settlement is a process rather than a term.

• The MUSD platform settlement asset role appears in this system in three useful locations:
• Entry accounting: pool participation is measured in a single, stable unit since staking is in MUSD.
• Continuous bookkeeping: the pool maintains consistent internal accounting since redemptions and reinvestments are made in MUSD.
• Voucher-based settlement: daily settlement eliminates the need to recalculate everything in a unit that is volatile or impacted by outside factors by converting market-making income into MQT.
• The term "MUSD settlement currency" takes on actuality at this point. It has nothing to do with making payments in stores. The goal is to have a steady internal settlement that doesn't sway whenever trading activity spikes.

MUSD Liquidity Layer: Not Passive, But Stable

When you hear the term "stable token," you might be tempted to think it simply exists. However, MUSD is active in a single way: it serves as the market-making pool system's liquidity layer. This does not imply that it is utilized for liquidity in external trading. This indicates that it supports stake tracking, redemption mechanisms, and pool liquidity. Additionally, the system maintains flexibility in participation without transforming the market-making layer into a free-for-all trading venue because redemption can be converted back into USDT at any time. Access must be balanced with boundaries.

Prospective Growth (Without Modifying the "Market Making Certificate" Positioning)

Since the platform does not intend to turn MUSD into a speculative asset, there is also a forward-looking plan here that should be carefully mentioned. The positioning is still the same: stable settlement layer, "market making certificates." However, the following are some of the ideas for the roadmap:

Compatibility Across Chains

Enhancing capital accessibility may involve facilitating asset mapping or multi-chain native issuance. Without altering the purpose of MUSD, friction is decreased if users are able to transfer value more easily across chains into the market-making layer.

Ecological Application in Stages

MUSD will be progressively extended into internal scenarios like:

• NFTs
• guild rewards
• RWA agreement

"Internal" is the key word. This is not about making MUSD a trading stable for all markets; it is still about controlled ecosystem use.

Investigation of Compliance

Investigating integration with compliance frameworks in specific jurisdictions is another way to move forward; depending on how regulations are implemented, this could involve progressively activating payment or settlement functions. That isn't what a worldwide payment coin promises. It's a structural direction: where appropriate, you can connect your existing stable settlement layer to regulated settlement rails.

The Fact That MUSD Stays in Its Lane Is What Gives It Its True Value

Zooming out, the role of the MUSD ecosystem is almost a philosophy: stability shouldn't be expected to perform the function of growth. One token is typically expected to be everything, including settlement rewards, governance, liquidity, payments, and value capture, which is why dual token systems fail. The weight eventually causes it to crack. MUSD stays away from that by having restrictions. It is a stable MUSD token with three specific uses: accounting, settlement, and entry.

Additionally, by maintaining MUSD's cleanliness, the system enables MQT to manage the flexible economic layer, which includes fund pools, offsets, trading, swaps, burns, and governance rights. Therefore, making MUSD "useful everywhere" is not the goal of the MUSD economic design. The goal is to stabilize the market-making layer so that everything else can function without becoming chaotic.