#How is USDm Designed to Benefit the MegaETH Ecosystem?
USDm represents MegaETH's first native stablecoin, developed in collaboration with Ethena to enhance network economics by lowering fees. By utilizing Ethena’s advanced stablecoin SaaS stack, USDm integrates seamlessly into wallets, applications, and on-chain services within the MegaETH ecosystem. This strategic partnership aims to make the network more cost-effective and efficient.
USDm v1 is issued using the USDtb infrastructure from Ethena, which primarily leverages BlackRock’s tokenized U.S. Treasury fund, known as BUIDL. This approach ensures that USDm is underpinned by a robust reserve, including liquid stablecoins that facilitate redemptions. The structure of the reserve enables programmatic allocation of yield to cover sequencer expenses, allowing MegaETH to operate at a minimal cost and maintain stable, sub-cent transaction fees without the need for a profit margin.
The introduction of USDm fosters an advantageous environment for all participants in the MegaETH network. This stablecoin not only aims to reduce transaction costs but also encourages a broader range of application designs.
While USDm takes the forefront, established stablecoins like USDT0 and cUSD will continue to be supported, ensuring ample liquidity and routing options for users. As USDm becomes integrated into various applications and services, its role in enhancing transactional efficiency and user experience will take center stage.