MegaETH launches stablecoin USDm to subsidize sequencer fees

BlockBeats News, September 9, according to The Block, MegaETH, an Ethereum scaling solution developed by MegaLabs, is launching a stablecoin called USDm on its chain. The USDm model is built in collaboration with the decentralized finance protocol Ethena, aiming to achieve synergy between the chain and ecosystem incentives by operating the sequencer at cost price and keeping transaction fees low and stable for users and builders.

MegaETH pointed out that currently, several Layer2 networks profit by charging additional sequencer fee spreads. This model may cause conflicts with users and developers, especially as EIP-4844 reduces data costs, making fee spreads even more unpredictable. USDm attempts to address this issue by directing stablecoin reserve yields to cover shared network costs. Once the project mainnet is launched, reserve income will be programmatically used to directly cover sequencer operating expenses, rather than serving as on-chain profit.

The first version of USDm will be issued through Ethena’s USDtb channel. According to the team, this structure provides institutional-level endorsement and transparent accounting—USDtb reserves are mainly held by Securitize in BlackRock’s tokenized US Treasury fund (BUIDL), supplemented by liquid stablecoins to handle redemptions. A MegaETH representative stated that USDm will initially operate by exchanging USDtb rather than direct fiat redemption. The team did not disclose the target fund size required to cover daily operations, stating that these parameters will be determined gradually over time.