dHedge to acquire DeFi protocol mStable following governance vote

The mStable DAO community voted in favor of a proposal for decentralized asset manager dHedge to acquire the protocol, preventing a complete shutdown of the project.

mStable, a DeFi stablecoin yield protocol, was in danger of being closed by the end of April. Its products offered uncompetitive yields and the community was mulling over how to sunset the entire ecosystem.

However, a lifeline emerged after mStable received merger and acquisition proposals from four other projects, including dHedge. These proposals — as well as the option to shut down the project — were put to a governance vote on Monday. The poll ended today, with the dHedge acquisition offer scooping 96% of votes cast.

dHedge plans to rescue mStable by migrating the latter’s yield products to the Toros Finance ecosystem, which is built on the dHedge platform and offers automated yield strategies. dHedge’s proposal says the migration to Toros’s stable yield strategies could boost mStable’s valuation and offer greater returns for customers.

Yield platforms shuttered

With the vote finalized, mStable will not go into shutdown mode. Instead, the protocol’s hosted frontend apps and customer support apparatus will remain online until at least the end of September. Several DeFi yield platforms have recently shuttered their frontend apps, including Friktion and Everlend Finance.

mStable also held another vote to determine what to do with its treasury should the DAO choose to sunset the protocol. This vote ended with participants in favor of liquidating its treasury assets for ether. However, with the dHedge acquisition being pursued, this governance action is likely moot.