One of the core reasons for participating in @capmoney_ before was the idea that “cUSD would be the core stablecoin of MegaETH.” But this logic has subtly shifted, as yesterday MegaETH announced a partnership with Ethena to launch a native stablecoin, USDm. The purpose of USDm’s creation is to “make MegaETH’s gas fees cheaper.” Here’s the simplified logic: 1/ USDtb is a stablecoin issued by Ethena, backed by BlackRock’s BUIDL U.S. Treasury fund. 2/ MegaETH plans to use USDtb as a reserve to issue the native stablecoin USDm, meaning USDm can also benefit from U.S. Treasury yields. 3/ These Treasury yields won’t go to USDm holders but will instead be used to “subsidize the operating costs of the sequencer,” thereby reducing the network’s gas fees. This is good news for the MegaETH chain, but not necessarily for stablecoin protocols within the ecosystem. For example, the influence of Cap’s cUSD stablecoin might be significantly weakened as a result. I checked out some tweets from MegaETH team members, and the general message is: 1/ USDm is a “network infrastructure stablecoin,” designed to stabilize gas fees and ensure smooth chain operations. 2/ cUSD/stcUSD are “yield-oriented stablecoins,” mainly offering more DeFi yield opportunities for apps and users. 3/ Both USDm and cUSD are important and can complement each other. That said, the launch of USDm will inevitably impact Cap’s market share. I also saw Ethena’s tweet, which mentioned that “many Mega Mafia projects have committed to building with a focus on USDm.” The logic for farming Cap has changed. While it’s still possible to farm, its priority will be downgraded. That said, I’ll continue to keep an eye on it.