USDM Stablecoin Launches on Taraxa

Meridian has announced the launch of its USDM stablecoin on the Taraxa network, marking a significant step for the ecosystem. The launch, set for November 25, 2024, enables users to mint USDM using TARA tokens as collateral. This move aims to strengthen Taraxa’s DeFi infrastructure and expand the use of USDM as a native stablecoin.

Key Highlights:

• USDM Utility: Users can mint USDM, utilize it as collateral, or trade it on decentralized exchanges within the Taraxa ecosystem.
• Collateral Mechanism: USDM is backed by over-collateralized TARA tokens, providing stability and reducing volatility risks.
• Stability Measures: Features like the Stability Pool and liquidation protocols ensure the solvency of the USDM supply.

About the Collaboration

Taraxa’s BlockDAG-based network, known for scalability and low latency, offers a robust foundation for DeFi innovations. Meridian’s integration with Taraxa provides a seamless mechanism for financial transactions and expands the reach of decentralized finance. The launch includes algorithmic stability features, interest-free loans, and non-custodial governance for enhanced transparency and user control.

Future Prospects

USDM’s introduction is expected to enable various use cases, including:

• Providing liquidity in DeFi protocols.
• Supporting decentralized trading and lending markets.
• Powering ecosystem-wide payments and incentives.

Meridian’s protocol, a fork of the Liquity system, ensures security and compliance through open-source smart contracts and rigorous audits. With this collaboration, both teams aim to offer innovative tools for navigating the decentralized financial landscape.