- Mehen Finance officially launched USDM.
- USDM is the first fiat-backed stablecoin on Cardano.
- Mehen Finance details how users can mint USDM.
The lack of a solid fiat-backed stablecoin on Cardano has often drawn criticism toward the network. Prominent crypto analysts argue that this absence undermines the network’s utility, usually leading to assertions that the network has no meaningful DeFi.
While Cardano boasts an array of algorithmic stablecoins, which, according to founder Charles Hoskinson, are much better than their counterparts, rallying cries for a fiat-backed stablecoin have reached a crescendo.
After much anticipation, the network has finally welcomed its first fiat-backed stablecoin.
Cardano’s Premiere Fiat-Backed Stablecoin:
On March 16, Mehen Finance, the brains behind Cardano’s inaugural fiat-backed stablecoin, marked a major milestone with the official launch of USDM.
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Starting March 18, institutional customers will undergo the onboarding process, which means USDM will slowly make its on-chain debut in the upcoming week.
As demand for a stablecoin option intensifies within the Cardano community, USDM is a watershed moment that could significantly propel DeFi on the network.
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According to the announcement, the stablecoin will initially be available in 17 US states. Additionally, USDM will debut on Cardano’s largest DEX, MinSwap, and Genius Yield.
How to Mint USDM?
Users in the approved 17 US states can create an account, undergo the KYC process, and link accounts. However, minting will initially be limited to institutional users, with minting for retail users set to roll out in the upcoming weeks.
According to Mehen Finance, eligible users seeking to mint USDM can do so without incurring fees. However, they will be subject to a 1.5% burn fee, with a minimum fee of $50 and a maximum of $5000.
This means that users can mint USDM tokens without paying any upfront fees, aside from potential bank charges. However, redeeming US dollars for their USDM will incur a 1.5% fee.
Mehen has confirmed that the fee structure is subject to change, with additional features possibly affecting these fees. The issuer detailed that while minting costs are covered by interest earned, redemption will incur costs, necessitating a $50 minimum redemption fee.
On the Flipside
- USDM was initially scheduled for December 19, 2023. However, Mehen Finance had to delay the launch.
- To celebrate the occasion, Mehen Finance minted exactly 420.69 USDM as its first mint.
- Steven Fisher, Mehen’s CTO, revealed that he has a daytime job and USDM is a passion project.
- According to TapTools, DJED only had 3212 holders at press time, making it the largest stablecoin on Cardano. Trailing behind was IUSD with 2549 users.
Why This Matters
Mehen Finance’s USDM is poised to propel the Cardano DeFi ecosystem by introducing a directly redeemable, capital-efficient, regulator-friendly asset that users can easily access through all the major DEXs or by minting.
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