Overview
Chaos Labs supports listing wUSDM on ZkSync, following our prior recommendation for listing this token on Ethereum, Optimism and Arbitrum. Below, we provide a brief overview of the token architecture, the state of protocol reserves and currently available on-chain liquidity.
wUSDM
wUSDM is an ERC-4626 standard wrapped USDM token. The underlying USDM is a rebasing token backed by a combination of US treasuries and other dollar-denominated assets, accruing value based on their yield.
wUSDM/USDM is managed by the Mountain Protocol, which is regulated by the Bermuda Monetary Authority.
BMA.fm
The company issues monthly attestations of assets. The latest attestation, reflecting the assets held as of 2nd of January 2025, shows that the token is slightly overcollateralized. The outstanding dollar value of issued USDM is approximately $50 million, with outstanding value remaining stable over 2024.
While older attestations show that the backing assets consisted, at the time, entirely of US treasury bills of different maturities, at present the majority of assets by value are money market funds, tokenized short duration US treasuries (USTB) and tokenized money market funds.
Liquidity
Availability of liquidity on ZkSync appears to be limited to a single SyncSwap pool created on January 15th, 2025, holding roughly $2.5 million worth of USDC and USDM.
Supply and Borrow Caps
We maintain our prior recommendations made for Ethereum, Optimism and Arbitrum listings for the other parameters and set the supply cap and borrow cap according to our usual methodology, taking into account the present reserves of the only sole liquidity pool on ZkSync. The borrow cap is set to the percentage of the supply cap equivalent to the kink.
Pricing
Chainlink maintains an oracle providing a price feed on ZkSync that should be utilized.
Specification
| Asset | wUSDM |
|---|---|
| Chain | ZkSync |
| Pool | Core |
| Collateral Factor | 75% |
| Liquidation Threshold | 78% |
| Liquidation Incentive | 10% |
| Supply Cap | 5,000,000 |
| Borrow Cap | 4,000,000 |
| Kink | 80% |
| Base | 0% |
| Multiplier | 0.06875 |
| Jump Multiplier | 2.5 |
| Reserve Factor | 25% |
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this recommendation.
Copyright
Copyright and related rights waived via CC0