Cardano(ADA) USDM U.S. Launch
Cardano$USDM - Cardano’s Premiere Fiat-backed Stablecoin - Target launch date in 19 U.S. states on 16 March 2024
The Mehen Protocol, at its most basic level, enables Cardano-based tokenization of real-world assets. The USDM stablecoin is the first product of the Mehen Protocol and is intended to be the enabling engine for Cardano DeFi. By bringing the ease and utility of fiat USD cash to Cardano, USDM will unlock substantial potential for the ecosystem.
The architecture of the Mehen Protocol seems simple, but the implementation is intricate and purposeful. The token’s monetary policy is designed to:
- Know how much of the token is in circulation on-chain without using a blockchain snapshot
- Know how much is in the reserve account by way of an oracle feed
- Prevent any minting that brings the circulation above the oracle value
The oracle (off-chain information feed) plays a pivotal role in this setup, providing on-chain updates that attest to the presence of real-world assets. For this purpose, Charli3 was chosen as the oracle, trusted to provide reliable data about the fiat reserves backing USDM.
