MegaUSD
USDM
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
USDM (MegaUSD) is the native yield-bearing stablecoin of the MegaETH ecosystem, built via Ethena's white-label Stablecoin-as-a-Service infrastructure. The project scores poorly across all operational, security, and market dimensions. In November 2025, the protocol experienced a severe operational failure involving a bridge outage and a 4-of-4 multisig misconfiguration during its pre-deposit campaign, precipitating an ~86% contraction in circulating supply and triggering a ~$400 million refund campaign without a formal public post-mortem. Although depositors were refunded, the incident severely damaged user adoption, leaving the asset with an extremely small holder base (56 holders), nonexistent grassroots community governance, and depressed market presence below $20M in market capitalization. Structurally, USDM lacks deployment-specific security audits, has unverified reserve attestation timelines, operates with an anonymous development team, and is heavily centralized around permissioned EOAs and a 4-of-8 Safe multisig owner. With persistent trading below its $1 peg and negligible organic demand outside incentive loops, the token presents severe structural and operational risks.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About MegaUSD (USDM)
USDM (MegaUSD) is a yield-bearing, asset-backed stablecoin issued as the native stablecoin for the MegaETH network. Developed using Ethena's white-label Stablecoin-as-a-Service infrastructure, the token utilizes a mint-and-burn mechanism without a fixed maximum supply. Its reserves generate yield through USDtb, which is backed by BlackRock's BUIDL fund.
In November 2025, during its pre-deposit launch phase, the project experienced a severe operational failure caused by a bridge outage combined with a 4-of-4 multisig misconfiguration. While this was an operational issue rather than a malicious exploit, the failure forced the project to execute a refund campaign of approximately $400 million to affected depositors. Following the incident, circulating supply contracted by roughly 86%, falling from approximately $206 million to around $29 million, without a formal public post-mortem published.
USDM operates under a centralized governance and administrative structure. Minting and redemptions are controlled by permissioned externally owned accounts (EOAs) with KYC requirements, asset custody is managed through Coinbase Prime, and the contract ownership is held by a 4-of-8 Safe multisig. The token lacks deployment-specific security audits for its MegaETH implementation, has no published reserve attestation schedule, and is maintained by an anonymous development team. Currently, the token exhibits limited market traction with a market capitalization below $20 million, an on-chain holder base of fewer than 60 addresses, and a history of trading persistently below its $1 peg.