MegaETH and Ethena Forge Partnership to Launch USDm: Revolutionizing Stablecoins for Real-Time Blockchain Applications

Introducing USDm: A New Era for Stablecoins on MegaETH

MegaETH is proud to announce the launch of USDm, a native stablecoin created in partnership with the innovative DeFi protocol Ethena. This collaboration brings a transformative approach to blockchain scalability by aligning network incentives, running sequencer operations at-cost, and delivering the lowest possible fees for both users and developers.

The Challenge of Fee Structures on Layer-2 Networks

Most Layer-2 solutions monetize their networks by charging an additional margin on sequencer fees. This setup inherently creates tension:

Higher fees generate more revenue for the chain.
But higher fees reduce app scalability and user adoption.

As transaction throughput increases and data costs compress, maintaining profit margins through fees becomes volatile and counterproductive. Raising fees discourages the very activity needed for ecosystem growth.

USDm’s Innovative Solution

USDm sidesteps this classic conflict by redirecting value flow. Instead of relying on user fees for network revenue, MegaETH leverages financial yield generated from stablecoin reserves, thanks to Ethena's robust stablecoin infrastructure.

Four Pillars of USDm’s Design

Reserves & Yield

USDm is initially issued on Ethena’s USDtb rails, where its reserves are primarily invested in BlackRock’s tokenized U.S. Treasury fund (BUIDL) via Securitize. This setup provides an institutional-grade, transparent backing and predictable yield, ensuring stability and trust.
Reserve Flexibility

Thanks to Ethena’s adaptable stablecoin stack, USDm’s reserve composition can evolve. While USDtb forms the foundation of USDm v1, future iterations may incorporate new or existing Ethena products like USDe, dynamically adjusting to market conditions.
Operating Expense Coverage

Yield from reserves programmatically supports sequencer operations. This approach allows MegaETH to price gas at-cost, keeping fees remarkably low and stable without relying on fee margins.
Incentive Realignment

As network demand grows, increased activity expands the ecosystem without pressuring user fees. The ecosystem’s growth is sustained by stablecoin yield, enabling a win-win for all stakeholders.

"USDm means lower fees for users and a more expressive design space for applications. We are excited to work with Ethena to enable a win-win scenario for all stakeholders in our ecosystem." — Shuyao Kong, Co-Founder of MegaETH

Why This Matters for Developers and Users

With sub-cent and predictable network fees, MegaETH opens the door to a variety of product categories that traditional Layer-2 fee structures couldn't support. Real-time transactions become truly viable, empowering developers to build faster, smarter, and more affordable blockchain applications.

Complementing Existing Stablecoins

USDm joins established stablecoins like USDT0 and cUSD on MegaETH, which continue to be fully supported across wallets, paymasters, decentralized exchanges, and money markets. USDT0 remains the canonical USDT on the network, ensuring deep liquidity and oracle coverage so users and builders can select the stablecoin best suited to their needs.

Spotlight on Ethena: The Powerhouse Behind USDm

Ethena is the driving force behind USDe, the third-largest and fastest-growing USD-denominated crypto asset in history. With over $13 billion in total value locked (TVL) and integrations across major centralized exchanges and DeFi platforms, Ethena has demonstrated exceptional scalability and security within the stablecoin space.

Their USDtb stablecoin rails have quickly gained institutional traction, circulating approximately $1.5 billion and pioneering compliance efforts with legislative initiatives like the GENIUS Act, in partnership with Anchorage Digital Bank.

By combining tokenized U.S. Treasuries with real-time atomic swaps between USDtb and BUIDL, Ethena offers unparalleled transparency and liquidity.

About MegaETH: The Foundation for Real-Time Blockchain

MegaETH is the first real-time blockchain secured by Ethereum, offering a hyper-optimized execution environment with heterogeneous architecture. It features:

Streaming throughput with 10 millisecond latency
Up to 100,000 transactions per second (TPS)
Real-time state streaming for scalability
Full Ethereum composability for compatibility

MegaETH empowers developers to build real-time applications at scale, while users benefit from instant, low-cost transactions.

Looking Ahead: A Collaborative Future

The MegaETH and Ethena partnership embodies a shared vision: to redefine how blockchain ecosystems grow and operate sustainably. By introducing USDm, they are setting a new standard for fee efficiency, stablecoin innovation, and network incentive alignment.

Together, they invite developers, users, and enterprises to explore fresh possibilities in decentralized finance and real-time blockchain applications.

Stay connected with MegaETH to learn more about USDm and how this collaboration will continue to shape the future of blockchain technology.