Megaeth creates a new economic core by launching the USDM Stablecoin. The active use of yields for institutional quality to subsidize network activities, with the aim of permanently detecting the income of user costs.
Summary
- Megaeth collaborated with Ethena to launch USDM, a stablecoin designed to finance Layer 2 operations.
- USDM uses reserve boundaries, mainly from BlackRock’s tokenized Treasury Fund, to subsidize network costs and lower costs.
In one announcement On 8 September, Megaeth revealed that it works together with Ethena to roll out USDM, a native stablecoin designed to finance sequencer operations without trusting transaction markups.
Instead of passing on to users, USDM is designed to channel the reserve boundaries to network costs, so that Megaeth can keep costs in almost costs while maintaining operational sustainability. The team said that the reserves are mainly kept in BlackRock’s Tokenized Treasury Fund, Buidl.
A new model for progressive blockchain -economics
According to Megaeth, it is actively built to solve a fundamental error in Layer-2 design: the wrong alignment between ecosystem growth and income from the reimbursement. Most chains capture value by charging margins on Sequencer costs, a model that becomes more volatile as transit scales and data costs compress. USDM, on the other hand, shifts users’ burden and relies on the spare boundaries to finance network activities.
This structure is intended to incur costs both stable and negligible, creating conditions for applications that cannot thrive when each action costs several cent.
“USDM means lower costs for users and a more expressive design space for applications. We are pleased to work with Ethena to make a win-win scenario possible for all stakeholders in our ecosystem,” said co-founder Shuyao Kong.
Megaeth said that the V1 reserves from USDM were mainly assigned to the Tokenized US Treasury Fund of BlackRock via Securitize, the provision of institutional quality support and a predictable yield stream. While the Stablecoin is launched with a foundation in USDTB, the reserves can evolve to absorb other Ethena products such as Usde, such as dictating market conditions, according to the announcement.
The choice of Ethena as a partner was strategic. Apart from his reputation for Usde, the third largest USD-contaminated crypto assets, Ethena brings its institutional USDTB rails to the partnership.
According to the statement, USDTB has around $ 1.5 billion in circulation and represents a groundbreaking effort in compliance with the regulations, developed in collaboration with Anchorage Digital Bank with the upcoming Genius Act in mind. The reserves are mainly held in Buidl, with Ethena and Securitize, switching on 24/7 atomic swaps between USDTB and the underlying treasuries, which ensure tight settlement and transparency.
