Introduction: Understanding USDM
How USDM Works
USDM is not just another stablecoin; it’s a revolution in digital asset management on the Cardano blockchain. Designed to be stable, transparent, and efficient, USDM bridges the gap between traditional fiat currencies and the decentralized world of blockchain.
What Makes USDM Unique
- Fiat-Backed Stability:
Every USDM token is backed 1:1 by USD in a US-based bank, ensuring its stability and reliability in the volatile world of cryptocurrencies.
- Cardano Integration:
As a Cardano native asset, USDM benefits from the security, efficiency, and interoperability of the Cardano blockchain.
- Capital Efficiency:
USDM is designed to be capital efficient, making it a preferred choice for decentralized finance (DeFi) protocols and on-chain payments.
Minting, Transferring, and Burning
- Minting USDM:
Users in eligible jurisdictions can connect their Cardano wallet to the Mehen dApp, complete identity verification, and link a bank account to mint USDM.
- Transferring USDM:
USDM can be sent peer-to-peer for instant on-chain payments, making it a versatile tool for transactions within the Cardano ecosystem.
- Burning USDM:
KYC-cleared users can redeem USDM 1:1 for USD, which is then sent to a linked bank account. The corresponding USDM tokens are burned to maintain the 1:1 peg.
Transparency and Security
A Trustless Framework
- On-Chain Verification:
Mehen USDM is transparently verified by a 3rd party oracle, ensuring that every mint and burn is authenticated.
- Decentralized Reserve Verification:
An independent oracle service with API access to our bank accounts verifies all token mints and burns. This approach ensures that minting can only occur if there are sufficient reserves.
- Smart Contract-Powered:
The issuance and management of USDM are governed by smart contracts on the Cardano blockchain, ensuring a trustless and secure framework.
Bridging the Future
With USDM, Mehen is not only offering a stablecoin but also pioneering a new era of digital asset management. By combining financial expertise with blockchain technology, we’re moving global digital asset adoption forward, one USDM at a time.