Introduction:
Recently Here At Allincrypto we interviewed the President/Founder, Matt Plomin and Co-founder and Chief Technical Officer Steven Fisher from the Mehen Team! The Full Interview Is below –
Video:
What Is Mehen:
Mehen is leading the development of the USDM fiat-anchored stablecoin, a crucial instrument for Cardano. USDM acts as a foundational asset for decentralized finance (DeFi) systems and facilitates immediate on-chain transactions. We aspire to be a scalable driving force for the expansion and embrace of the full Cardano network.
How it works:
USDM is more than just a stablecoin; it represents a transformative approach to digital asset management within the Cardano blockchain. Crafted for stability, transparency, and efficacy, USDM seamlessly connects the conventional fiat realm with the decentralized blockchain universe.
The Process:
Creating USDM:
In approved regions, users can link their Cardano wallet to the Mehen dApp, undergo identity validation, and associate a bank account to produce USDM.
Sending USDM:
USDM can be dispatched directly between peers for immediate on-chain settlements, positioning it as a flexible instrument for dealings within the Cardano framework.
Redeeming USDM:
Users who have passed KYC can exchange USDM at a 1:1 ratio for USD, which is subsequently transferred to the connected bank account. The equivalent USDM tokens are destroyed to uphold the 1:1 parity.
Is it Trustless??
Blockchain-Based Validation:
Mehen USDM undergoes transparent verification by an external oracle, guaranteeing the authentication of every creation and destruction of tokens.
Distributed Reserve Checks:
A separate oracle service, having API connectivity to our banking accounts, confirms all token productions and eliminations. This method guarantees that tokens can only be created when adequate reserves are present.
Driven by Smart Contracts:
The generation and oversight of USDM are directed by smart contracts within the Cardano blockchain, assuring a dependable and safe structure.
What are some of USDM$’s features:
Currency-Anchored Security: Each USDM token is supported 1:1 by USD held in a US bank, offering a stable and trustworthy presence amidst the fluctuating cryptocurrency landscape.
Embedded within Cardano: Being an intrinsic asset of Cardano, USDM enjoys the robustness, proficiency, and compatibility of the Cardano blockchain.
Optimized Capital Use: USDM is crafted for optimal capital utilization, positioning it as a top pick for decentralized finance (DeFi) systems and blockchain-based transactions.
Conclusion:
The cardano defi ecosystem has been growing at a rapid rate in ADA terms and it will be very interesting to see how a fiat backed stablecoin will effect the TVL growth:
A fiat backed stablecoin will offer a variety on benefits, most notably being ‘stable’ as it will allow for a safe heaven natively within the cardano ecosystem from volatility. It will also make for new and exciting defi farms and opportunities! we are very excited to see Mehen launch and will be keeping you up to date on the project!
