MegaETH, an Ethereum layer-2 protocol supported by Vitalik Buterin, is set to launch a yield-bearing stablecoin named USDm. Developed in collaboration with Ethena, an algorithmic stablecoin protocol with $13 billion in total value locked, USDm will operate on Ethena's USDtb infrastructure. This infrastructure channels reserves into BlackRock's BUIDL, a tokenized US Treasury bill fund with a $2.2 billion market cap, providing a steady yield. The yield from USDm's reserves is intended to offset sequencer fees, which are the Ethereum gas costs incurred by layer-2 protocols when publishing transaction batches to the main chain. This innovative model aims to reduce the reliance on sequencer fees by utilizing yield from alternative sources. MegaETH co-founder Shuyao Kong stated that USDm would "lower fees for users" and expand the design space for applications. The introduction of yield-bearing stablecoins has gained momentum following the GENIUS Act in the U.S., which restricts issuers from offering yield-generating stablecoins.