Frequently Asked Questions

Explore the information below to gain a comprehensive understanding of USDM's features and functionality. If you don't find the answers you're looking for, feel free to reach out to our support team for further assistance.

USDM operates in a very similar way as other fiat-backed stablecoins like USDC or USDP. Primary users (those who have an account with Mountain Protocol) can mint and redeem USDM at $1. Both primary and secondary users can freely transfer their USDM, deposit it into smart contracts, and interact with any protocol that is compatible with the ERC20 standard.

USDM is fully collateralized by "USDM Reserves", held in segregated, bankruptcy remote accounts. Reserves are composed exclusively by short-term US Treasuries. Short term US government debt is considered the lowest risk USD-denominated asset. "USDM Reserves" differ from most fiat-backed stablecoins in that the composition of stablecoins and bank deposits is minimized, to mitigate counterparty risk.

Currently, USDM is natively supported on Ethereum, Polygon, Arbitrum, Optimism and Base. Mountain Protocol plans to bring native issuance to other blockchains in the future. If you are a looking to bring USDM to a specific blockchain, contact us.

USDM can be purchased directly from Mountain Protocol by Primary users, which are those with an active Mountain Protocol account. Users need to be incorporated businesses in supported countries and complying with the Terms of Service of Mountain Protocol. Secondary users can acquire USDM from Primary users, from other Secondary users or via decentralized exchanges.

USDM rebases daily, accruing new tokens regardless of where the USDM is held. The mechanism of rebasing modifies the balanceOf via a rewardMultiplier. For more details, refer to the documentation here.


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