MegaETH, an Ethereum layer-2 protocol backed by Vitalik Buterin, introduced the upcoming launch of a yield-bearing stablecoin which may give it a special enterprise mannequin than conventional L2s, which drive income via transaction charges.
The stablecoin, USDm, is being developed in partnership with Ethena, an algorithmic stablecoin protocol with $13 billion in complete worth locked (TVL). It should launch on Ethena’s USDtb infrastructure, which channels reserves into BlackRock’s BUIDL — a tokenized US Treasury invoice fund with a $2.2 billion market cap and regular yield, based on RWA.xyz.
Yield from the stablecoin’s reserves will reportedly be used to offset sequencer charges, the Ethereum fuel prices a layer-2 incurs when publishing batches of transactions to the primary chain.
The proposed mannequin would possibly decrease the necessity for sequencer charges, as an alternative drawing on yield from another supply. In a press release, MegaETH co-founder Shuyao Kong mentioned that the USDm stablecoin would “decrease charges for customers” and permit for “extra expressive design house for purposes.”
Yield-bearing stablecoins are digital property pegged to a different asset, equivalent to a fiat forex, and that generates yield to holders.
The availability of yield-bearing stablecoins has surged following the passage of the GENIUS Act in the USA, which bans issuers from providing yield-generating stablecoins. Ethena’s USDe and Sky’s USDS have been among the many principal beneficiaries of the strict guidelines.
Associated: Ethereum devs and L2 leaders go all in on based mostly and native rollups
Charges on Ethereum
Sequencer charges have prompted controversy, particularly within the Ethereum ecosystem, the place some imagine the community ought to demand extra of the payment pie.
In accordance with Token Terminal, Ethereum has collected $1.1 billion in charges prior to now calendar yr. Nevertheless, the quantity of charges collected has plummeted since February.
Journal: MegaETH launch may save Ethereum… however at what value?
