Injective Integrates Mountain Protocol Offering USDM Stablecoin as Collateral for Derivatives
Injective, a Cosmos Layer-1 blockchain for finance, said it has integrated with Mountain Protocol, the issuer of USDM, the yield-bearing stablecoin.
This integration will allow its users to earn yield on USDM’s Treasury Bill (T-Bill) backed assets while using it as a margin for trading derivatives, said the firm.
T-Bill’s are short-term debt securities issued by the government to raise funds. They are considered one of the safest investments since they are backed by the government’s credit.
The introduction of USDM is a significant addition to real-world assets (RWAs) in the Injective system, allowing users to directly earn yields that would traditionally go to third parties, said the firm.
“Injective’s collaboration with Mountain Protocol unites traditional and decentralized models to a point where everyday users can leverage the advantages of both models,” said Eric Chen, co-founder and CEO of Injective Labs.
“The availability of compliant stablecoins like USDM expands transaction opportunities using institutional grade RWAs, with US Treasury support ensuring both long-term security and sustainability,” said Chen.
Injective notes that USDM is different from other mainstream stablecoins, such as USDC stablecoin.
The USDM stablecoin is backed by T-Bills held within the USDM reserves. Another notable factor is that USDM reserves are held under custody by several financial institutions and audited by OpenZeppelin, a firm involved in securing blockchain applications and smart contracts.
The protocol notes another advantage of USDM is its liquidity across compatible decentralized exchanges and protocols. Users will experience a trading environment similar to that of non-tokenized T-Bills on traditional centralized exchanges.
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