Mehen Finance, the company responsible for Cardano’s initial fiat supported stablecoin, has now introduced USDM. The procedure for onboarding institutional clients will commence soon, paving the way for USDM to make its on-chain presence felt in the following week.
There was a period when a strong fiat supported stablecoin was missing on Cardano. This had become a bone of contention for prime crypto analysts who would air their contempt. The assumption was that the network did not possess any viable DeFi, and questions about its usefulness were raised.
Cardano takes credit for multiple algorithmic stablecoins which are more effective than the competition, but according to the founder, Charles Hoskinson, there was a constant demand for fiat supported stablecoin. As the demand reached a crescendo from the Cardano community, USDM came into the picture, boosting DeFi on the network.
In the beginning, the stablecoin will be accessible in 17 states. Additionally, USDM will be making its mark on Cardano’s biggest DEX, MiniSwap, and Genius Yield.
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In the 17 states where it has received consent, users will be allowed to start an account, followed by the KYC procedure and connect the account. Minting will only be for institutional users towards the start, which will then witness retail users coming within the fold.
As per Mehen Finance, deserving users looking to mint USDM can do so without any fees. Instead, they will be required to pay a burn fee amounting to 1.5%, coming with the lowest fee of $50, the highest being $5,000.
This signifies that it will be possible for users to mint USDM tokens without having to make payments regarding upfront fees other than the applicable bank charges. Repossessing US dollars against their USDM will have a 1.5% fee.
Mehen has mentioned that changes may be made to the fee structure, the added features making the difference. The cost of minting is taken care of by the interest earned, but the redeeming will come with a cost requiring a minimum redeeming fee of $50.
As per the records, the USDM release was slated for the 19th of December, 2023, but was postponed for reasons. To commemorate the incident, Mehen Finance initially minted 420.69 USDM. The CTO of Mehen Finance, Steven Fisher, divulged that it was part-time work for him. As per TapTools, DJED had 3212 holders when going to the press.
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USDM is expected to further the Cardano DeFi ecosystem by releasing a redeemable and regulator-oriented asset available for users throughout every prime DEX.
