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 Injective
Injective 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 Protocol
Mountain
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).
Learn more about the latest from Injective on
Twitter/X or https://injective.com/. Connect on Discord.
Media Contact
M Group Strategic
Communications
injective@mgroupsc.com
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SOURCE Injective Labs