MegaETH partners with Ethena to launch the USDm stablecoin: Using yields to subsidize L2 fees as a new business model

MegaETH announced a partnership with Ethena Labs to launch the native yield stablecoin USDm, which is expected to cover network operating costs through reserve yields rather than the additional profits collected by the sequencer (. The goal is to drop and stabilize user transaction fees. This move not only brings a new business model to L2 but may also rewrite the economic incentive structure of the Ethereum ecosystem.

Stablecoin USDm launched: MegaETH leads the disruption of the sorter fee model

The Ethereum L2 MegaETH, supported by Vitalik Buterin, announced the launch of a yield-bearing stablecoin USDm, which will replace the traditional sorter “fee bump” business model to cover network operating costs through reserved earnings.

Generally speaking, L2 will charge a certain percentage fee when the sequencer submits transactions to the Ethereum mainnet, as platform revenue for token buybacks or ecological incentives. However, this model often causes transaction costs to fluctuate with market volatility, becoming a major pain point for users.

Currently, USDm is launched as a MegaETH native stablecoin, which can subsidize the operation of the chain “down to cost price” through reserve income, ensuring lower and more predictable transaction costs, creating a more transparent and low-friction environment for users and developers.

MegaETH emphasized: “It is still too early to talk about token buybacks when the native token has not yet been issued; subsidizing the operating expenses of the sorter is currently the most reasonable choice.”

MegaETH partners with Ethena: Compliance status becomes an advantage

The announcement states that USDm will be issued based on the USDtb framework of Ethena, with the BlackRock tokenized US Treasury fund BUIDL reserves, custodized through Securitize, allowing USDm to have institutional-level transparency and compliance.

Currently, USDm will not provide fiat exchange in its initial phase and can only be exchanged through USDtb. MegaETH has not yet disclosed the expected issuance scale, only stating that it will be adjusted over time.

For MegaETH, collaborating with Ethena can also leverage its compliance status. As the issuer of USDe, Ethena is now the third-largest stablecoin by market capitalization, with a scale of 12.8 billion USD. The USDtb it issued has a circulation of about 1.5 billion USD.

At the same time, the U.S. licensed crypto asset bank Anchorage Digital is also collaborating with Ethena to promote the introduction of USDtb in the United States to comply with the “GENIUS” regulatory framework.

) The weakness of altcoins has spurred demand for stablecoins: Ethena USDe scales with a monthly growth of 75%, breaking 9 billion USD (

USDm promotes high-performance vision: supporting the next generation of applications

The team stated that USDm will be deeply integrated into the wallet, payment providers, decentralized applications )dApps(, and on-chain services on MegaETH, while currently active stablecoins on the network such as USDT0 and cUSD will still be available.

The official emphasized that the low costs and high efficiency brought by USDm will unlock more application scenarios, including streaming services or interactive games, and support on-chain costs and long-term development.

)Extended Reading MegaETH Application: Bet with One Finger: How Euphoria, which raised 7.5 million USD, Simplifies User Action Trading Experience? (

This article MegaETH partners with Ethena to launch the USDm stablecoin: using revenue to subsidize L2 fees as a new business model first appeared in Chain News ABMedia.