MegaETH and Ethena jointly launch native stablecoin USDm to subsidize sequencer fees

PANews reported on September 8th that according to The Block, MegaETH, the Ethereum scaling solution developed by MegaLabs, is launching an on-chain stablecoin called USDm. This stablecoin is designed to replace traditional sorter deposits and use reserve revenue to cover network operating costs. This model, built in collaboration with the decentralized finance protocol Ethena, aims to align on-chain and ecosystem incentives by operating sorters at cost, keeping user and developer transaction fees low and stable. Currently, many Layer 2 networks generate revenue by adding a markup to sorter fees. USDm aims to solve this problem: when the project launches on mainnet, it will use the stablecoin reserve revenue to cover shared network costs.

The first version of USDm will be issued on Ethena's USDtb protocol layer. A MegaETH representative told The Block that USDm will be redeemable for USDtb at launch, rather than offering direct fiat redemption. The team did not disclose the target float to cover daily operating expenses, stating that these parameters will be determined over time. Regarding other revenue sources (such as MEV), MegaETH stated that details will be announced closer to the mainnet launch.