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 by 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 will 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, in accordance to 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 a substitute drawing on yield from an alternate supply. In a press release, MegaETH co-founder Shuyao Kong stated that the USDm stablecoin would “decrease charges for customers” and permit for “extra expressive design house for purposes.”
Yield-bearing stablecoins are digital belongings pegged to a different asset, corresponding to a fiat forex, and that generates yield to holders.
The provide of yield-bearing stablecoins has surged following the passage of the GENIUS Act within the United States, which bans issuers from providing yield-generating stablecoins. Ethena’s USDe and Sky’s USDS have been among the many essential beneficiaries of the strict guidelines.
Related: Ethereum devs and L2 leaders go all in on primarily based and native rollups
Fees on Ethereum
Sequencer charges have precipitated controversy, particularly within the Ethereum ecosystem, the place some consider the community ought to demand extra of the price pie.
According to Token Terminal, Ethereum has collected $1.1 billion in charges up to now calendar 12 months. However, the quantity of charges collected has plummeted since February.
Magazine: MegaETH launch might save Ethereum… however at what price?
