MegaLabs Launches USDm Stablecoin to Replace Sequencer Bonds and Stabilize Fees
MegaETH, in collaboration with Ethena, unveils USDm, a stablecoin designed to reduce gas fees while maintaining high-speed transactions, backed by BlackRock’s BUIDL fund.
BUIDL
ENA
USDTB
Summary
MegaETH has launched USDm, a stablecoin developed with Ethena to subsidize sequencer costs and target sub-$0.01 gas fees. USDm is issued through Ethena’s USDtb channel, with reserves invested in BlackRock’s BUIDL fund. MegaETH’s ecosystem reports a TVL above $13B and USDtb circulation around $1.5B. The model shifts network funding from user fees to financial yields, aiming to facilitate high-frequency trading and payments.
Terms & Concepts
- USDm: A stablecoin introduced by MegaLabs with Ethena to stabilize Layer2 transaction fees and fund network operations.
- Layer2: A scaling solution built on top of a blockchain like Ethereum, designed to improve transaction speed and reduce costs.
- USDtb: Ethena’s stablecoin channel used as the issuance and redemption layer for USDm.