Injective Integrates Mountain Protocol to Power Tokenized T-Bills

Injective Labs announced today the integration of Mountain Protocol, bringing the first native yield-bearing stablecoin, USDM, into the Injective ecosystem. This strategic move allows users to leverage USDM across various decentralized applications (dApps) on Injective while earning yield from treasury bills.

We are pleased to announce a significant milestone for USDM: @injective is now the first blockchain to integrate wUSDM as collateral for derivatives trading in @HelixApp_

This integration improves capital efficiency for traders, allowing them to earn yield on their collateral,… https://t.co/xfB44638Lv pic.twitter.com/xyzgD6Vw9r

— Mountain Protocol | USDM (@MountainUSDM) July 24, 2024

Mountain Protocol, launched in 2023 and backed by Multicoin Capital, Coinbase Ventures, and Castle Island Ventures, introduces USDM as the first permissionless yield-bearing stablecoin. Unlike traditional stablecoins, USDM offers users a 5% yield on their holdings through rebasing, where users receive daily interest automatically.

Seamless Integration with Injective

According to the firms’ report, USDM will be bridged into the Injective ecosystem as wUSDM, a wrapped version that includes the yield in its price, eliminating the need for rebasing. This wrapped version will reflect the current USDM price, providing users with a seamless experience and a consistent 5% annual yield. Users can unwrap wUSDM back to USDM, maintaining the accrued yield.

The integration of USDM into Injective enables various new use cases. Notably, USDM can now be used as a margin for trading derivatives on decentralized exchanges (DEXs) built on Injective. This allows traders to earn yield while trading, enhancing capital efficiency and passive yield generation. For instance, users trading with USDM on platforms like Helix can participate in on-chain markets, such as BTC/wUSDM Perp, while still earning yield.

\The collaboration between Mountain Protocol and Injective marks a significant development in the evolution of asset tokenization. This partnership bridges the gap between traditional finance (TradFi) and decentralized finance (DeFi), creating a seamless pathway for users to interact with both financial models. Integrating a regulated, yield-bearing stablecoin like USDM enhances Injective’s tokenized offerings, reinforcing its position as a blockchain built for finance.