MegaETH Introduces USDm Stablecoin to Transform layer 2 Economics
MegaETH and Ethena have teamed up to launch USDm, a novel stablecoin aimed at redefining how Layer 2 networks operate financially.
USDm introduces an innovative approach by using yield from institutional-grade reserves to cover network operation costs. This shift allows MegaETH to maintain low, stable fees independent of user activity.
The reserves for USDm are chiefly invested in BlackRock’s tokenized treasury fund,known as BUIDL. This strategy aims to decouple revenue streams from transaction fees,ensuring financial sustainability as the network scales.
- Aims to stabilize and reduce transaction fees
- Powered by yields from top-tier financial instruments
- Eliminates dependence on increased user fees as transaction volume grows
By addressing the common issue of fee volatility in Layer 2 designs, USDm creates a more favorable surroundings for application growth. With negligible fees, applications are less constrained and can flourish, leading to greater adoption and utility.
USDm’s initial reserves are primarily linked to USDtb via securitize. This connection offers backing from a well-regulated financial product. As market needs change,USDm plans to diversify its reserves,including options like USDe.
Ethena’s USDtb stands out with around $1.5 billion in circulation. It is celebrated for its regulatory compliance, thanks to support from Anchorage Digital Bank and alignment with the GENIUS Act. The seamless integration between USDtb and treasury assets ensures transparent, efficient transactions.
With USDm, MegaETH envisions a enduring Layer 2 network where lower fees benefit users and encourage broader participation.
