MegaETH new move: Jointly with Ethena to layout stablecoin USDm

MegaETH is the ultimate battle of high-performance chains, supported by significant individuals and institutions in the blockchain field such as Vitalik, Joseph Lubin, and Dragonfly, featuring extremely low latency (only 10 milliseconds) and exceptionally high performance (TPS up to 100,000), providing the possibility of infrastructure for high-performance scenarios (transactions, payments, etc.) during the Iphone moment.

Most L2 profit models involve adding extra profit margins on top of sorter fees and Gas fees. However, this also creates a contradiction between users and public chains: users have to pay more, and the chain's profits can become thicker.

To achieve large-scale growth of Dapps (such as high online), the potential for new scenarios (such as high-frequency quantitative trading, etc.), and low network fees are essential growth enablers. Just as Memecoins require low network fees, even though they were born in the ETH ecosystem, their ultimate growth occurs in the Solana ecosystem. The reason for this is that the demand for speed in Memecoins far exceeds that of other traditional DeFi types. With the emergence of forms like CLOB (Central Limit Order Book), more high-performance scenarios are also pursuing extreme speed, such as high-frequency trading on-chain.

However, relying on the revenue model of sorting has become increasingly unstable and difficult to maintain in the long term with the development of technology (increased throughput and decreased data costs); raising fees to protect profits will directly suppress innovation and growth.

MegaETH collaborates with Ethena to launch a brand new native stablecoin USDm, aimed at unifying the network incentive mechanism. This allows MegaETH to operate the sorter at cost price, bringing the lowest usage fees to users and developers.

Through USDm, MegaETH shifts the network's funding source from "user fee payments" to "financial gains," thereby supporting network growth.

Today, Megaeth officially launched USDm, a native stablecoin created to support various innovative applications on MegaETH. USDm is issued through Ethena's stablecoin framework (see below) and is designed to be deeply integrated into MegaETH's wallets, applications, and on-chain services.

"USDm means that users can enjoy lower fees, while application developers have a broader design space. Megaeth is pleased to collaborate with Ethena to create a win-win situation for all participants in the ecosystem."

Reserves and Earnings

USDM v1 is issued on the USDtb track of Ethena, with its reserves primarily invested in BlackRock's tokenized US Treasury fund BUIDL through Securitize, while retaining some liquidity stablecoins to meet redemption demands, thereby providing transparent, institutional-level reserve support and predictable yield basis.

flexibility of reserves

The stablecoin architecture of Ethena has long-term scalability, allowing MegaETH to flexibly adjust the collateral composition of USDM, incorporating other existing or future Ethena products (such as USDe). USDM v1 will be launched based on USDtb, but its underlying design allows the reserve structure to be dynamically adjusted as market conditions change.

Operating expense coverage

The yield from the underlying reserves will be directly used to cover the operating costs of the sorter. This allows us to price Gas at the operational cost price, thereby maintaining low and stable fees for users and developers without relying on additional profit margins. This is beneficial for a large number of high-frequency quantitative trading and payment scenarios in Blockchain.

Realignment of the incentive mechanism

As the costs arising from network growth increase, we do not need to raise fees for users to maintain sustainability. The more network activity there is, the more prosperous the ecosystem; the revenue from stablecoins, in turn, provides funding support for the network. When transaction fees are stable and below one cent, many application categories that were unfeasible under the condition of "costing several cents per operation" will become viable.

Currently, stablecoins that are active on MegaETH, such as USDT0 and cUSD, remain first-class citizens in the ecosystem, widely used for wallets, payment agents, DEX, and money markets. Among them, USDT0, as the standard USDT representation on MegaETH, will continuously maintain its deep liquidity, oracle coverage, and optimal execution routing, so that developers and users can choose the most suitable assets based on their needs.

Why choose Ethena?

Ethena is the protocol behind USDe, which is the third largest and fastest growing dollar-pegged crypto asset in history. Currently, Ethena's TVL exceeds $13 billion, with a user base ranking among the top in DeFi protocols, and it has integrated with several leading centralized exchanges and mainstream DeFi applications. Ethena demonstrates the ability to scale quickly and securely, becoming the third largest dollar issuer in the crypto space.

The reserve-backed stablecoin channel USDtb of Ethena has achieved rapid adoption and institutional application. Currently, the circulation scale of USDtb is approximately 1.5 billion USD, and as the first stablecoin expected to comply with the requirements of the GENIUS Act, it is working with Anchorage Digital Bank to advance. The reserves of USDtb are mainly invested in BlackRock's tokenized U.S. Treasury fund BUIDL through Securitize (with a target allocation of about 90%).

At the same time, Ethena and Securitize have achieved 7×24 hour atomic swaps between USDtb and BUIDL, further enhancing settlement efficiency and transparency.

We are excited to collaborate with Ethena to bring a top-tier DeFi user experience to MegaETH.

About Ethena

Ethena is the protocol behind USDe, which is the third largest and fastest growing dollar-pegged crypto asset in history. Ethena's TVL currently exceeds $13 billion, boasting one of the largest user bases in DeFi protocols, and has integrated with several top centralized exchanges and mainstream DeFi applications.

About MegaETH

MegaETH is the first real-time Blockchain, secured by Ethereum, and driven by a highly optimized execution environment and heterogeneous architecture. It can achieve streaming throughput, with extremely low latency (only 10 milliseconds) and high performance (TPS up to 100,000). Developers can expand applications through real-time state streams, while users can experience instant transactions, all while fully retaining Ethereum's composability.