TL;DR
- Mountain Protocol launches USDM on Injective, the ecosystem’s first native yield-bearing stablecoin.
- USDM, backed by Treasury bonds, offers users an annualized yield of 5%.
- The integration enables USDM to be used as margin for derivatives trading on the protocol, opening up new applications for asset tokenization.
The integration of Mountain Protocol into Injective marks a significant milestone in the decentralized finance ecosystem.
Mountain Protocol has launched USDM, the first native yield-bearing stablecoin, which is now available on Injective.
1/ Mountain Protocol is launching on Injective to bring the first native yield-bearing stablecoin (USDM) into the Injective ecosystem.
Users can now leverage @MountainUSDM on Injective dApps while earning yield from tokenized t-bills. https://t.co/mK6tWvTfAU
— Injective 🥷 (@injective) July 24, 2024
This advancement allows Injective users to take advantage of USDM, which offers a 5% yield backed by Treasury bonds.
This stablecoin not only maintains a secure foundation, but also allows users to earn daily yield on their holdings.
USDM is an innovative stablecoin that offers a way to maintain a consistent return on digital assets, an approach that breaks with traditional practices in the stablecoin world.
Unlike most stablecoins that are backed by fiat currency reserves or low-risk liquid assets, USDM returns the yield of Treasury bonds to users.
This represents a radical change by allowing USDM holders to earn a daily interest rate, securing an annual yield of 5%.
On the Injective platform, USDM will be converted into wUSDM, a wrapped version that will reflect the current price of USDM and include the yield within its value.
This simplifies the experience for users, eliminating the need for rebasing and providing a steady 5% annual increase in the value of wUSDM.
Users will also be able to convert wUSDM back to USDM to receive the accumulated yield along with the stable asset.
Innovation in Asset Tokenization on Injective
The integration of Mountain Protocol and Injective opens up new opportunities in the decentralized finance space.
The ability to use USDM as margin for derivatives trading on DEX platforms built on the platform marks a significant advancement in capital efficiency and passive yield generation.
This ability to use a yield-generating asset as margin for derivative transactions not only improves capital efficiency but also optimizes risk management by offsetting potential losses against the returns earned.
The arrival of USDM on Injective also highlights the growing convergence between traditional and decentralized finance.
Backed by prominent investors such as Multicoin Capital, Coinbase Ventures, and Castle Island Ventures, Mountain Protocol is paving the way for deeper integration between both financial worlds.
This collaboration not only strengthens Injective’s tokenized offerings, but also lays the foundation for future innovations in asset tokenization and the evolution of finance in the digital age.
The partnership between Mountain Protocol and Injective represents a decisive step towards a more integrated and efficient financial future, where blockchain technology continues to play a crucial role in redefining financial services.
