Mountain Protocol has announced the initial issuance of its yield-bearing stablecoin USDM on ZKsync Era.
The launch will allow ZKsync (ZK) users to use the USDM stablecoin in decentralized finance while earning returns from tokenized treasury bills. According to the Mountain Protocol team, the two tokens, USDM and wUSDM, are now available natively on ZKsync Era.
USDM is a regulated ERC-20 token, similar to other fiat-backed stablecoins, and was first unveiled in September 2023. It allows holders to take advantage of US Treasuries and other opportunities within DeFi. The rebasing stablecoin offers an annual return of 4.7%, with holders receiving daily rewards. USDM is pegged 1:1 to the US dollar.
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ZKsync users can now hold USDM in their wallets to earn daily returns, use it for payments and settlements, and deposit it into liquidity pools to earn trading fees. The token can also be used in DeFi lending and as collateral in perpetual asset trading.
Meanwhile, wUSDM, the packaged version of the stablecoin, reflects the price increase as USDM rewards pile up for holders. Mountain Protocol allows users to pack and unpack USDM and wUSDM on the mainnet, decentralized exchanges and liquidity aggregators.
According to Mountain Protocol’s announcement on January 20, both USDM and wUSDM are now available for trading on the ZKsync DEX platform SyncSwap, with over $5 million in liquidity.
“By incorporating USDM into the blockchain, ZKsync will improve the overall yield rates of its ecosystem, making it a more capital-efficient blockchain, while adopting a transparent and secure token,” Mountain Protocol shared via X.
Notably, USDM remains unavailable to US citizens and in other restricted countries and jurisdictions.
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