MegaETH’s USDm stablecoin pre-deposit launch hits ‘turbulence’ amid outages and cap flip-flops
MegaETH's rollout of pre-deposits for its USDm stablecoin on Tuesday descended into confusion, as outages, rapid-fire cap changes, and a misconfigured multisig transaction triggered an unexpected early reopening of deposits, forcing the team to walk back plans for a $1 billion limit.
The event was set to begin at 9 a.m. ET with a $250 million cap, but the project’s third-party bridge provider went down almost immediately, leaving users unable to access the site for close to an hour.
Once service resumed, the entire $250 million filled in under three minutes, prompting MegaETH to announce it would raise the limit to $1 billion to give more users access to USDm on day one.
A timeline reconstructed on X by the pseudonymous analyst 'olimpio' shows that the team’s multisig queued the cap-increase transaction with a 4-of-4 signature threshold instead of the intended 3-of-4. That error made the transaction executable by anyone, and it was executed roughly 34 minutes early, reopening deposits before MegaETH planned to relaunch the bridge.
Deposits surged again, quickly surpassing $400 million as MegaETH attempted to re-establish a limit. The team first tried to reset the cap to $400 million, then to $500 million after deposits exceeded the lower threshold.
A second $1 billion cap-increase transaction briefly appeared in the multisig queue, according to olimpio, but by late morning, MegaETH said it would no longer pursue the expansion. It added that it would introduce a withdrawal option for users who no longer wish to participate following the chaotic rollout.
"We've encountered unexpected issues throughout the process and are no longer moving forward with the $1 billion cap," the team wrote. "We will be sharing a retro shortly. Apologies for the turbulence."
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
You May Also Like
AI Startup Surge Risks Repeating Tech’s Last Funding Mania
Bitcoin ETFs Revive with $241 Million Inflow, Ethereum ETFs Report Lowest Trading Value of the Week
