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

PANews September 8th news, according to The Block, MegaETH, an Ethereum expansion solution developed by MegaLabs, is launching a stablecoin called USDm on the chain. The stablecoin is designed to replace the traditional sorter margin and use reserve income to cover network operation costs. The model, constructed in partnership with MegaETH and decentralized financial protocol Ethena, aims to coordinate on-chain and ecosystem incentives by running the sorter at cost and keeping user and developer transaction fees low and stable. Currently, multiple Layer2 networks earn revenue by marking up on sorter fees. And USDm aims to solve this problem: when the project goes online on the main network, it will use the profits of stablecoin reserves to pay for the cost of the shared network. The first version of USDm will be released on Ethena's USDtb protocol layer. A MegaETH representative revealed to The Block that USDm will be exchanged for USDtb when it is launched, rather than providing fiat redemption directly. The team did not disclose the target floating amount covering daily operating expenses, indicating that these parameters will be determined over time. Regarding other sources of income (such as MEV), MegaETH said that the relevant details will be announced before the main network is online.