Mountain Protocol launches yield-bearing stablecoin, announces fundraise

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Mountain Protocol launches yield-bearing stablecoin, announces fundraise
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Mountain Protocol is launching what it says is the first nationally-regulated, yield-bearing stablecoin called UDSM.

The ERC-20 token was designed to give non-U.S. users access to U.S. Treasury yields and can be used across a myriad DeFi protocols, Mountain Protocol wrote in a Monday in a social media"The token is fully backed by short-term U.S. Treasuries, with the difference that USDM provides users daily rewards in the form of rebasing, currently at a rate of 5% APY," Mountain Protocol added."The rebasing mechanism is very similar to Lido Finance'sUSDM is not available to U.S.

While Mountain Protocol said that stablecoins were the"unquestionable killer use-case of blockchains," it noted that risk-free yields currently around 5% are pushing users back into the traditional financial system. The total supply of Ethereum stablecoins has been declining over the past year and currently stands around $74 billion, according to The Block's Data Dashboard.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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