MegaETH stands as the definitive contender in high-performance blockchain innovation. It is supported by leading figures and institutions in the industry such as Vitalik, Joseph Lubin, and Dragonfly. Featuring exceptionally low latency—just 10 milliseconds—and throughput up to 100,000 transactions per second (TPS), MegaETH delivers the infrastructure necessary for high-speed scenarios like trading and payments, marking a transformative breakthrough for blockchain technology.

Most Layer 2 platforms generate revenue by adding surcharges to sequencer and gas fees, but this model creates tension: users pay more so the chain can remain profitable.

To drive large-scale Dapp adoption (such as high online activity) and unlock new use cases (including high-frequency quantitative trading), low network fees are a growth catalyst. Memecoins, for example, need ultra-low transaction costs. While Memecoin projects originated in the Ethereum ecosystem, their breakout growth occurred on Solana, largely because memecoins demand speed far above traditional DeFi projects. As order book (CLOB) solutions and other high-performance protocols emerge, more use cases—such as high-frequency trading—require maximum transaction speed.

Reliance on sequencer revenue becomes more volatile and unsustainable as technology advances: throughput rises and data costs fall. Raising fees to protect margins stifles innovation and hinders growth.

MegaETH has joined forces with Ethena to launch a ground-breaking native stablecoin, USDm, designed to align network incentives. This enables MegaETH to operate sequencers at their actual operating cost, minimizing fees for both users and developers.

With USDm, MegaETH shifts network funding from “user-paid transaction fees” to “financial yield,” supporting ecosystem growth.

MegaETH officially introduces USDm today—a native stablecoin supporting innovative apps on MegaETH. Ethena’s stablecoin framework issues USDm, which integrates seamlessly with MegaETH wallets, applications, and on-chain services.

“USDm means users enjoy lower costs while developers gain greater creative freedom. MegaETH is proud to partner with Ethena, creating win-win opportunities for all participants in our ecosystem.”

Reserves & Yield

USDm v1 is issued over Ethena’s USDtb platform, with primary reserves invested by Securitize in BlackRock’s tokenized U.S. Treasury fund (BUIDL). A portion of liquidity is maintained in stablecoins to meet redemption needs, ensuring transparent, institution-grade reserve management and predictable yield.

Reserve Flexibility

Ethena’s stablecoin architecture offers long-term extensibility, enabling MegaETH to flexibly optimize USDm’s collateral mix by incorporating other current or future Ethena products like USDe. USDm v1 launches with USDtb as its foundation, but the underlying design allows the reserve structure to dynamically adjust as market conditions evolve.

Operating Expense Coverage

Yield generated from the reserves directly covers sequencer operating costs. This allows gas pricing at actual operating cost, delivering consistently low and stable fees for end users and developers—without relying on additional profit layers. The model particularly benefits high-frequency trading, payments, and other blockchain-intensive scenarios.

Realigning Incentives

As network activity and costs grow, sustainability does not require higher user fees. Greater activity strengthens the ecosystem, while stablecoin yield provides financial support for network operations. When transaction fees stabilize below one cent, entire categories of applications—previously impossible with multi-cent transaction costs—become viable.

Stablecoins already active on MegaETH, such as USDT0 and cUSD, play an integral role in the ecosystem. Developers and users widely use them in wallets, payment gateway services, DEXs, and money markets. USDT0 serves as the standard USDT representation on MegaETH. We will continue to maintain its deep liquidity, oracle integration, and optimal execution routing. This ensures developers and users can choose the assets best suited to their needs.

Why Ethena?

Ethena powers USDe, the third-largest and fastest-growing USD-pegged crypto asset to date. Ethena manages more than $13 billion in total value locked (TVL), maintains one of DeFi’s largest user bases, and is integrated with top centralized exchanges and leading DeFi platforms. Ethena’s rapid, secure scalability has made it the third-largest USD issuer in the crypto industry.

Ethena’s reserve-backed stablecoin, USDtb, has seen swift institutional adoption. USDtb currently circulates at about $1.5 billion and is the first stablecoin positioned to meet the requirements of the GENIUS Act, in partnership with Anchorage Digital Bank. Securitize invests USDtb reserves primarily in BlackRock’s tokenized U.S. Treasury fund, BUIDL, with a target allocation of approximately 90%.

Ethena and Securitize have enabled atomic 24/7 swaps between USDtb and BUIDL, further enhancing transparency and settlement efficiency.

We look forward to working with Ethena to bring top-tier DeFi experiences to MegaETH.

About Ethena

Ethena is the protocol behind USDe, the third-largest and fastest-growing USD-pegged crypto asset. Ethena has more than $13 billion in TVL, one of the largest user communities in DeFi, and partnerships with major centralized exchanges and top DeFi applications.

About MegaETH

MegaETH is the blockchain industry’s first real-time chain, secured by Ethereum, powered by a highly optimized execution environment and heterogeneous infrastructure. It delivers streaming throughput with latency as low as 10 milliseconds and performance up to 100,000 TPS. Developers can build with real-time state streaming, while users experience instant transactions and full Ethereum composability.

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