In partnership with Ethena, MegaETH is launching USDm to align incentives across the network, run the sequencer at-cost, and deliver the lowest fees for users and builders.

Today we're introducing USDm, a native stablecoin purpose-built to power real-time applications on MegaETH. USDm is issued through Ethena's stablecoin stack and designed to be deeply integrated across wallets, apps, and onchain services on MegaETH.

Most L2s monetize by charging an extra margin on sequencer fees. That puts the chain in tension with its ecosystem: the chain earns more when users pay more — but apps' ability to scale depends on network fees staying low. As throughput increases and data costs compress, that margin becomes more volatile and structurally harder to defend, while raising fees to protect margin actively discourages the very usage you need to grow.

"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

With USDm, MegaETH redirects value from financial yield rather than users to fund the network:

1. Reserves & yield
   USDm v1 is issued on Ethena's USDtb rails, where reserves are primarily invested in BlackRock's tokenized U.S. Treasury fund (BUIDL) via Securitize, alongside liquid stablecoins for redemptions, providing transparent, institutional-grade backing and a predictable yield base.
2. Reserve flexibility
   Ethena's stablecoin stack is built for adaptability, which lets MegaETH adjust USDm's collateral mix to include other existing or future Ethena products, such as USDe. USDm will begin with USDtb as the foundation for v1, but its architecture enables reserve composition to change over time in response to market conditions.
3. OPEX coverage
   The underlying reserve yield is programmatically directed to cover sequencer operations. That lets us price gas at-cost, keeping fees low and stable for users and builders without relying on a margin.
4. Incentives realigned
   As network costs increase from growth, we don't need to raise fees on users to remain sustainable. Activity expands the ecosystem; the stablecoin yield finances the network.

When fees are sub-cent and predictable, whole categories of products become viable that simply don't work when every action costs multiple cents.

Stablecoins already active on MegaETH, USDT0 and cUSD, remain first-class citizens across wallets, paymasters, DEX routes, and money markets. USDT0 serves as the canonical USDT representation on MegaETH. We'll maintain deep liquidity, oracle coverage, and best-execution routing so builders and users can choose the asset that fits their needs.

Why Ethena

Ethena is the protocol behind USDe, the third-largest and fastest growing USD-denominated crypto asset in history. Ethena has over $13 billion in TVL today across one of the largest sets of users from a DeFi protocol, alongside integrations with some of the largest centralized exchanges and major DeFi applications. They have demonstrated an ability to scale rapidly and securely into the third-largest dollar issuer in the entire space.

Ethena's reserve-backed stablecoin rails, USDtb, have seen rapid adoption and institutionalization. USDtb today has ~$1.5 billion in circulation, and is the first stablecoin with a clear line of sight to compliance with the new GENIUS Act in collaboration with Anchorage Digital Bank. USDtb's reserves are held primarily in BlackRock's tokenized U.S. Treasuries fund (BUIDL) via Securitize (targeting ~90% allocation), and Ethena/Securitize enabled 24/7 atomic swaps between USDtb and BUIDL to tighten settlement and transparency.

We're excited to be working hand in hand with Ethena to bring best-in-class DeFi experiences to MegaETH.

About Ethena

Ethena is the protocol behind USDe, the third-largest and fastest-growing USD-denominated crypto asset in history. Ethena has over $13 billion in TVL today across one of the largest sets of users from a DeFi protocol, alongside integrations with some of the largest centralized exchanges and major DeFi applications.

About MegaETH

MegaETH is the first real-time blockchain, secured by Ethereum and powered by a hyper-optimized execution environment with a heterogeneous architecture. It delivers streaming throughput with 10 millisecond latency and up to 100,000 TPS. Developers scale apps with real-time state streaming, and users get instant transactions all while preserving full Ethereum composability.