Revolutionizing Fees: How MegaETH’s USDm Stablecoin is Transforming Layer 2!

MegaETH Introduces Innovative Stablecoin, USDm, to transform Network Economics

megaeth collaborates with Ethena to launch USDm, revolutionizing how Layer 2 networks cover operational costs.

On september 8, MegaETH announced a groundbreaking stablecoin, USDm, in partnership with Ethena. This asset aims to fund Layer 2 sequencer operations using reserve yields, reducing reliance on transaction fees.

• USDm channels income from reserves to support network costs.
• Maintaining low fees helps sustain operations efficiently.
• Reserves are primarily in BlackRock’s tokenized treasury fund,BUIDL.

The customary model charges margins on sequencer fees, causing volatility as throughput increases and data costs decrease. USDm addresses this issue by shifting the financial burden to reserve yields, making fees stable and minimal.

“usdm ensures lower fees and wider request opportunities,” said MegaETH co-founder Shuyao Kong. “We’re thrilled to partner with Ethena, benefiting all stakeholders.”

USDm’s initial reserves are secured in BlackRock’s U.S. Treasury fund via Securitize. The stablecoin could incorporate other Ethena products like USDe based on market needs.

Ethena’s USDtb, with around $1.5 billion in circulation,exemplifies regulatory compliance. Its reserves are predominantly in BUIDL, enabling seamless atomic swaps for transparency and efficiency.