Mountain Protocol has announced the native issuance of its yield-bearing stablecoin USDM on ZKsync Era.
The launch enables ZKsync (ZK) users to leverage the USDM stablecoin in decentralized finance while earning yield from tokenized Treasury bills. According to the Mountain Protocol team, the two tokens, USDM and wUSDM, are now natively available on ZKsync Era.
USDM is a regulated ERC-20 token, similar to other top fiat-backed stablecoins, and was first unveiled in September 2023. It allows holders to benefit from U.S. Treasury bills and other opportunities across DeFi. The rebasing stablecoin offers a 4.7% annual percentage yield, with rewards accrued daily for holders. USDM is pegged 1:1 to the U.S. dollar.
ZKsync users can now hold USDM in their wallets to earn daily yield, use it for payments and settlements, and deposit it into liquidity pools to earn trading fees. The token can also be utilized in DeFi lending and as collateral in perpetuals trading.
Meanwhile, wUSDM, the wrapped version of the stablecoin, reflects price appreciation as USDM rewards accumulate for holders. Mountain Protocol allows users to wrap and unwrap USDM and wUSDM on its mainnet, decentralized exchanges, and liquidity aggregators.
Per the Mountain Protocol announcement on Jan. 20, both USDM and wUSDM are now available to trade on ZKsync DEX platform SyncSwap, with more than $5 million in liquidity.
“By incorporating USDM into the blockchain, ZKsync will be enhancing its ecosystem’s overall yield rates, making it a more capital-efficient blockchain, while adopting a transparent and secure token,” Mountain Protocol shared via X.
Notably, USDM remains unavailable to U.S. citizens and across other restricted countries and jurisdictions.
Read the full article here