Mountain Protocol USD (USDM)

Rank #2933

Mountain Protocol USD, also called USDM, is a stablecoin designed to maintain a value reference close to 1:1 in USD. The token is of the rebasing ERC20 type, which means it can automatically adjust the amount received according to the protocol rules.

How USDM rebasing works

USDM is a rebasing ERC20 token and is redeemable by primary users for a value pegged 1:1 to USD. In addition, the protocol performs rebases daily, with the aim of reflecting rewards for holders.

Stablecoin backing and reserves

USDM is fully backed by USDM Reserves. These reserves are held in custody at regulated financial institutions, in accounts segregated from the company's operational accounts, in a bankruptcy-remote structure, for the benefit of users.

Where the rewards come from

The rewards associated with rebasing are generated by the interest paid by the US Treasuries held in the USDM Reserves. Thus, the performance of the backing and yields influences the dynamics of USDM's daily rebasing.

Use and role in the ecosystem

As a stablecoin with backing and a redemption mechanism, USDM tends to be used as a unit of value within the ecosystem of Ethereum networks and related layers. In general, this type of token seeks to facilitate movement and liquidity with reference to USD.