T-Bill-backed USDM will be available on Injective, with Helix as the first dApp to support both spot and derivatives trading.
NEW YORK, July 24, 2024 /PRNewswire/ — Injective, the blockchain optimized for finance, today announced its integration of Mountain Protocol (“Mountain”), the issuer of USDM, the first regulated, permissionless and yield-bearing stablecoin. This integration marks the first time users can earn yield on USDM’s Treasury Bill (T-Bill) backed assets, while also using it as margin for trading derivatives. It is also the first instance where USDM can be used as margin for trading perpetuals within the broader crypto industry.
The introduction of USDM is a significant addition to real-world assets (RWAs) in the Injective ecosystem, enabling users to directly earn yields that would traditionally go to third parties.
Eric Chen, co-founder and CEO of Injective Labs, commented: “Injective’s collaboration with Mountain Protocol unites traditional and decentralized models to a point where everyday users can leverage the advantages of both models. The availability of compliant stablecoins like USDM expands transaction opportunities using institutional grade RWAs, with US Treasury support ensuring both long term security and sustainability. Simultaneously, Injective now provides a gateway for traditional assets that bypass fees alongside regulatory and economic inefficiencies associated with middlemen such as large banks, bringing full ownership of yields back to the individual.”
USDM is distinctive among comparable stablecoins, e.g., USDC, with its backing by T-Bills, held within the USDM Reserves. Widely regarded as the safest, most regulated USD assets, USDM Reserves are held under custody by several highly regarded global financial institutions and audited by OpenZeppelin, the world leader in securing blockchain applications and smart contracts. A major advantage of USDM is its liquidity across compatible decentralized exchanges and protocols. Users will experience a trading environment similar to that of non-tokenized T-Bills on traditional centralized exchanges thanks to Injective.
Martin Carrica, co-founder and CEO of Mountain Protocol stated: “We’re seeing a high level of interest in USDM in the market, evidenced by its trading volume and secondary market liquidity nearly doubling that of other yield-bearing stablecoins. Injective’s decentralized network makes this integration a natural fit, further bolstering the adoption and accessibility of yield-bearing assets for everyday users.”
This integration marks the first time USDM can be used as margin for trading derivatives, significantly enhancing capital efficiency and returns by generating passive income even when locked. As a result, users trading with USDM can participate in on-chain markets while earning a yield. This in turn reduces opportunity costs, improves risk management by offsetting potential losses with yield, and boosts market liquidity and stability. By diversifying income sources and aligning incentives among stakeholders, this integration optimizes USDM for everyday use.
USDM is a major milestone in Injective’s path to converge TradFi and DeFi by continually bringing new RWAs. Helix, the premier DEX in the Injective ecosystem, currently offers EU, US, and APAC currency pairs plus commodity pairs (gold, silver), with more to join. Helix will be the first dApp to offer and utilize USDM for trading derivatives.
Learn more about Injective’s Mountain integration in this blog.
About InjectiveInjective is a lightning-fast interoperable layer one blockchain optimized for building the premier Web3 finance applications. Injective provides developers with powerful plug-and-play modules for creating unmatched dApps. INJ is the native asset that powers Injective and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by prominent investors such as Jump Crypto, Pantera and Mark Cuban.
About Mountain ProtocolMountain Protocol is the issuer of USDM, the next generation stablecoin. USDM is the first regulated, permissionless, and yield-bearing stablecoin, fully backed by US Treasuries. USDM follows a proven security model used by all the well-known stablecoins, sharing real yield with holders, currently at a 5% APY. Mountain Protocol is a prudentially-regulated financial entity, compliant with the regulations of the Bermuda Monetary Authority (License #202302512).
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SOURCE Injective Labs
