Benchmark

Benchmark is a credit layer on MegaETH that provides a liquidity engine for the USDm stablecoin. It isolates different collateral types into separate lending pools that share no collateral with each other, so bad debt in one asset does not spread to other markets, and liquidations are executed by independent liquidators; pricing and risk use VaR and CVaR models to estimate potential loss within a confidence interval, setting collateral ratios and liquidation lines from that estimate with parameters adjustable to market volatility, while USDm liquidity is routed between pools by the engine.

It addresses fragmented stablecoin liquidity and thin market-making depth on MegaETH, with lending rates set by supply and demand in each isolated pool. USDm was introduced by MegaETH together with Ethena in September 2025 to run the sequencer at cost and lower fees. The project is built with Birch Hill Labs and positions itself as the credit and liquidity base layer of MegaETH.