Main Street܂ Foundation

Institutional Yield for Everyone - Democratizing the Options Box Spread onchain, with $msY.

[Main Street܂ Foundation @Main_St_Found]

@Main_St_Finance 🚨 Update:

The community ballot for the repeg & payout initiative is officially open.

Should it pass, qualifying users might gain reimbursement + expedited recovery entry.

Find out more: ↓ https://t.co/A2V2AwbYj6

[Main Street܂ Foundation @Main_St_Found]

@Main_St_Finance 🚨 Reminder:

The public vote on the repeg & payout framework has just begun.

Should it advance, approved holders might gain a payout + priority fund recovery.

Find out more: ↓ https://t.co/A2V2AwbYj6

[Main Street @Main_St_Finance]

msY Portfolio & Redemption Update

We want to provide a clear update on the current msY portfolio, the remaining box-spread maturity profile, and the path forward for restoring liquidity to the minter.

As previously communicated, the msY box-spread strategy began approaching capacity in its original short-duration Deribit execution environment. In response, Main Street expanded execution across additional centralized venues and OTC box-spread counterparties in order to continue optimizing risk-adjusted yield for holders and avoid forcing new capital into increasingly compressed shorter-dated opportunities.

As part of that expansion, certain OTC box-spread opportunities were executed at longer maturities than the initial short-duration target range. Following the unwind of the shortest-dated and most liquid positions during the initial phase of the Morpho market squeeze, the remaining portfolio now consists of boxes with approximately 60 to 340 days remaining to expiry. The remaining book is therefore naturally more concentrated in the medium-to-longer dated part of the maturity ladder, because the shortest-dated liquidity was used first to support the minter and reduce near-term pressure.

Importantly, this does not change the core economics of the strategy. These are fixed-payoff box-spread positions. If held to expiry, and assuming the relevant venue or counterparty performs, the positions accrete toward their known maturity value. The current situation is therefore primarily one of timing, secondary-market liquidity, and redemption pacing; not a change in the expected terminal payoff of the portfolio.

Current portfolio position:
Current CR, assuming boxes are held to expiry: 100.04%
Insurance fund: $525,527 in msUSD
Insurance fund treatment: if required, the msUSD held in the insurance fund can be burned, increasing protocol coverage
Coverage including the insurance fund: above 100%

Our priority is to preserve full backing and avoid crystallizing unnecessary losses. We are actively exploring opportunities to unwind or sell selected boxes where executable pricing is available and where, after taking into account the insurance fund and any applicable protection mechanisms, the system remains above 100% coverage. Where that threshold can be met, we intend to take those opportunities and use the proceeds to continue refilling the minter.

We do not expect that every remaining box necessarily needs to be held all the way to expiry. As boxes move closer to maturity, the discount between secondary-market pricing and maturity value should naturally compress, which can create further opportunities to exit closer to NAV without impairing coverage. This means liquidity can be restored progressively through a combination of scheduled expiries and selective secondary-market unwinds where pricing is acceptable.

Where secondary liquidity is not available on acceptable terms, we will continue following the approach outlined in our risk framework: allow box positions to mature, release liquidity as expiries occur, and refill the minter as capital becomes available.
Selling fixed-payoff positions at distressed marks simply to accelerate liquidity would be value-destructive for holders. Waiting for better execution, selectively unwinding where coverage remains above 100%, and using the insurance fund as intended gives the protocol the strongest path to preserve backing and restore liquidity in an orderly way.

This is a timing and execution-management issue, and the portfolio remains structured around fixed-payoff positions that accrete toward maturity value. We are confident in the path forward and will continue to provide updates as liquidity is released, boxes are unwound, and the minter is refilled.

Our focus remains unchanged: preserve NAV, protect holders, avoid uneconomic liquidations, maintain coverage, and work through the maturity ladder in the most responsible way possible.

[Main Street @Main_St_Finance]

Main Street has no place for banks, but security and accountability is non-negotiable.

That's why we use @AccountableData for proof of solvency. Every dollar is verified in real time, sealed with Merkle trees, and processed inside secure enclaves.

https://t.co/AwLom4Np6m

[Main Street @Main_St_Finance]

Introducing the msY Vault:
Democratizing Access to Box Spread Yields

[Main Street @Main_St_Finance]

Mainstreet Update — Morpho, Proof of Reserves & Liquidity

We want to address the current situation around the Mainstreet Morpho market and provide clarity.

First and most importantly: Mainstreet remains fully backed.

The recent shutdown of our third-party proof-of-reserves dashboard does not reflect any loss of assets or deterioration in portfolio quality. This is an infrastructure and reporting issue, not a solvency issue.

As a result of the dashboard going offline, the oracle supporting the Morpho market is expected to pause within the next 24 hours. This has created understandable concern and triggered elevated borrowing rates as leveraged loopers rush to unwind positions.

We are actively responding on multiple fronts:

Engaging alternative proof-of-reserves providers to restore independent verification as quickly as possible.

Continuing to unwind box spread positions and redeploy liquidity into the minter / Morpho ecosystem.

Preparing to act as liquidity provider and liquidator of last resort if necessary to prevent disorderly market conditions.

Over the past several days, we have already unwound our shortest-dated box positions and released free cash, with more than $8 million in USDC already transferred to the minter to support liquidity and assist with unwinds.

Mainstreet’s core portfolio consists primarily of box spreads. These are structurally low-volatility positions designed to converge to fair value at expiry, making them highly predictable from a NAV perspective when held to maturity.

However, box spreads are not always frictionless to exit early.

Selling before expiry may involve:

Transaction fees
Wider bid/ask spreads
Temporary market-maker discounts
Liquidity-dependent haircuts based on expiry and position size

This means that while our portfolio remains fully backed, converting positions into immediate liquidity depends on prevailing market depth and market-maker appetite.

Our priority is clear: protect NAV while maximizing liquidity for the protocol.

We are willing to accept elevated fees and modest execution costs to accelerate liquidity release, supported by the protocol insurance fund. However, we will not realize losses beyond the insurance fund purely to force immediate exits. If market pricing becomes materially irrational, we will allow positions to continue toward expiry and realize full value at settlement, as outlined in our risk disclosures and discussions with key partners.

If borrowing rates continue to rise and liquidations occur, Mainstreet is prepared to step in as liquidator of last resort. As additional USDC is freed from box maturities and unwinds, part of that capital may be deployed to absorb and liquidate stressed Morpho positions to minimize bad debt risk.

Weekend liquidity is currently limited, and market-maker quotes are materially less favorable than during normal trading hours, which temporarily slows execution. We expect to have a clearer picture over the coming days and will continue providing updates as progress is made.

We understand this is a stressful situation and sincerely appreciate the community’s patience and trust.

Our commitment remains unchanged: protect user funds, preserve NAV, and restore normal market conditions as quickly and responsibly as possible.

[Main Street @Main_St_Finance]

"Space what? IP who? What are you on about?

The only thing rocketing is the yield you're earning from Main Street Finance.

btw that'll be $20,000. We accept $msUSD."

[Main Street @Main_St_Finance]

For the next 48 days, you can lock in and earn 12.7% APY with $msY PT tokens from @pendle_fi.

That's about how long it'd take to walk from Washington to Miami, earning yield the whole way.

Or you could just stay on Main Street and skip the blisters...

[Main Street @Main_St_Finance]

Side quest: grab a bag of YTs, earning yield and Gamma Points until maturity (July 29. 2026):
https://t.co/UUQO76MO8Z

[Main Street @Main_St_Finance]

Welcome to Main Street, where:

> Yield does not depend on market sentiment or funding rate cycles
> TVL grew 15%/30d while perp funding basis traders bled
> Ample room for growth before any yield compression
> Gamma points szn

Institutional yield for everyone.

[Main Street @Main_St_Finance]

Reads like the makings of a great portfolio.

Only suggestion: more Main Street 💪

[Main Street @Main_St_Finance]

Intern has been staring at this $msY live yield tracker by @stablewatchHQ for 20 minutes. We're not going to stop them.

To date, Main Street has delivered $1.77M worth of yield.

[CryptoDep @Crypto_Dep]

⚡️ Stablecoins by Monthly Supply Growth

Total stablecoin market cap at $314B, up $590M (+0.17%) MoM.

@Gate USD leads supply growth at +86.9%, followed by apxUSD (+56.8%) and USDTB (+54.1%). USDe is the largest in the set at $4.51B with steady +11.8% growth.

$GUSD $apxUSD $USDTB $fxUSD $USX $M $MSUSD $USAT $rwaUSDi $USDe $DOLA $RLUSD

👉 https://t.co/uVkIDZd3Aa

[Main Street܂ Foundation @Main_St_Found]

@ChrisVanHollen $7000 at a bar, Senator?

[Main Street܂ Foundation @Main_St_Found]

@jimcramer Crazy how people love to say "now it's gonna go down because Jim mentioned it" and yet I bought $AMD years ago because Jim mentioned it. Sell it if you want I guess

[Main Street܂ Foundation @Main_St_Found]

@ewarren Deception like claiming to be a minority to get yourself ahead in life?

[Main Street܂ Foundation @Main_St_Found]

I bought shares of @WaltDisneyWorld for my niece when she was born. The hatred #kimmel is allowed to spew on @ABC does not seem to align with a newborn's interests.

[FBI Director Kash Patel @FBIDirectorKash]

The money doesn’t lie.

The evidence shows the charity who supposedly fought the Klan - FUNDED the Klan.

The charity who supposedly fought Neo-nazis - FUNDED Neo-nazis.

The SPLC engaged in a massive fraud operation to deceive their donors, funded the very hate groups they claim to oppose, and then hid their operations from the public through shell companies and fake entities.

This @FBI and @DAGToddBlanche won’t let them get away with it any longer.

[Main Street܂ Foundation @Main_St_Found]

@mcuban Small biz owner & CAH hospital board trustee. I get the pay for services direct between hospital & company. Would the company pull its own high-deductible type policy assuming they can't swallow an ICU stay, even at direct rates?

[Main Street܂ Foundation @Main_St_Found]

@RealCandaceO @LauraLoomer These jr. high (ish) Twitter fights make you look so professional