Injective (INJ) Integrates Mountain Protocol to Introduce Tokenized T-Bills

Injective
(INJ)has
announced
its
integration
with
Mountain
Protocol,
introducing
the
first
native
yield-bearing
stablecoin,
USDM,
into
its
ecosystem.
This
collaboration
aims
to
enhance
the
decentralized
finance
(DeFi)
landscape
by
offering
users
the
ability
to
leverage
USDM
in
various
decentralized
applications
(dApps)
while
earning
yield
from
treasury
bills,
according
to
the

Injective
Blog.

What
is
Mountain
Protocol?

Mountain
Protocol,
the
issuer
of
USDM,
is
supported
by
prominent
investors
such
as
Multicoin
Capital,
Coinbase
Ventures,
and
Castle
Island
Ventures.
Launched
in
2023,
Mountain
Protocol
aims
to
enable
stablecoin
holders
to
benefit
from
a
secure,
regulated,
enterprise-grade
product
that
provides
the
“risk-free
rate”
to
users.

Historical
Context

Stablecoins
are
typically
designed
to
maintain
a
stable
value
relative
to
a
specific
asset,
often
backed
by
reserves
of
fiat
currency
or
other
low-risk,
liquid
assets
such
as
treasury
bills.
Traditionally,
the
yield
from
these
assets
is
retained
by
the
stablecoin
issuer.
However,
Mountain
Protocol’s
USDM
turns
this
model
on
its
head
by
offering
the
yield
back
to
the
users.
Currently,
USDM
provides
a
5%
yield
on
the
principal.

What
is
USDM?

USDM
is
a
stablecoin
backed
by
treasury
bills,
allowing
users
to
earn
and
retain
daily
interest
on
their
holdings.
Users
holding
USDM
in
their
wallets
receive
a
5%
yield
through
a
process
called
rebasing.

How
does
USDM
work
on
Injective?

USDM
will
be
introduced
into
the
Injective
ecosystem
as
wUSDM,
a
wrapped
version
that
reflects
the
current
USDM
price
and
includes
the
yield.
This
approach
ensures
a
seamless
experience
for
end
users,
with
wUSDM’s
value
incrementally
increasing
by
5%
annually,
providing
the
same
consistent
yield
as
USDM.

Users
on
Injective
can
also
unwrap
their
wUSDM
to
convert
it
back
to
USDM,
receiving
the
stablecoin
along
with
the
accrued
yield.

Powering
New
Tokenized
Use
Cases
on
Injective

The
integration
of
Mountain
Protocol
with
Injective
unlocks
several
innovative
use
cases.
For
instance,
USDM
can
be
used
as
margin
for
trading
derivatives
on
decentralized
exchanges
(DEXs)
built
on
Injective,
allowing
traders
to
earn
yield
while
trading.
This
is
the
first
time
USDM
can
be
used
as
margin
for
derivatives
trading.

Such
use
cases
enhance
capital
efficiency
and
passive
yield
generation
for
users.
Utilizing
USDM
on
Injective
can
potentially
reduce
opportunity
costs,
improve
risk
management
by
offsetting
potential
losses
with
yield,
and
boost
market
liquidity
and
stability.

RWAs
on
Injective

The
integration
marks
a
significant
milestone
in
the
evolution
of
asset
tokenization
on
Injective.
This
collaboration
bridges
the
gap
between
traditional
and
on-chain
finance,
creating
a
seamless
pathway
for
users
to
interact
with
both
models.
The
availability
of
a
regulated,
yield-bearing
stablecoin
like
USDM
within
the
Injective
ecosystem
enhances
tokenized
offerings
on
Injective,
solidifying
its
position
as
a
blockchain
built
for
finance.

The
integration
of
Mountain
Protocol
and
Injective,
along
with
the
introduction
of
USDM,
heralds
a
new
era
of
innovation
and
convergence
in
the
financial
world.
As
traditional
finance
(TradFi)
and
decentralized
finance
(DeFi)
continue
to
merge,
Injective
will
play
a
crucial
role
in
shaping
the
future
of
finance.

Image
source:
Shutterstock