#MegaETH Launches USDm #stablecoin To Subsidize Network Fees
#Ethereum✅ layer-2 protocol MegaETH has announced the upcoming launch of USDm, a yield-bearing stablecoin backed by tokenized treasuries, developed in partnership with #EthenaLabs . The algorithmic stablecoin protocol currently maintains $13 billion in total value locked across its platform ecosystem.
USDm will operate on Ethena's USDtb infrastructure, channeling reserves into BlackRock's BUIDL tokenized Treasury fund. The $2.2 billion market cap fund provides steady yield generation for the stablecoin's underlying assets.
Revenue from the stablecoin's reserves will offset sequencer fees, reducing #Ethereum gas costs when publishing transaction batches. This innovative funding model could lower operational expenses compared to traditional layer-2 networks that rely primarily on transaction fees.
Co-founder Shuyao Kong emphasized the benefits for users and developers. "The USDm stablecoin would lower fees for users and allow for more expressive design space for applications," Kong explained in a company statement.
Stablecoin with yield-bearing capabilities have experienced significant growth following recent U.S. regulatory developments. The GENIUS Act banned domestic issuers from offering yield-generating products, creating opportunities for international alternatives like Ethena's USDe and Sky's USDS.
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