The USDm stablecoin, built with Ethena and backed by tokenized treasuries, will use its yield to subsidize Ethereum sequencer fees.
MegaETH, an Ethereum layer-2 protocol backed by Vitalik Buterin, announced the upcoming launch of a yield-bearing stablecoin that might give it a different business model than traditional L2s, which drive revenue through transaction fees.
The stablecoin, USDm, is being developed in partnership with Ethena, an algorithmic stablecoin protocol with $13 billion in total value locked (TVL). It will launch on Ethena’s USDtb infrastructure, which channels reserves into BlackRock’s BUIDL — a tokenized US Treasury bill fund with a $2.2 billion market cap and steady yield, according to RWA.xyz.
Yield from the stablecoin’s reserves will reportedly be used to offset sequencer fees, the Ethereum gas costs a layer-2 incurs when publishing batches of transactions to the main chain.