Do you know how Mehen $USDM works? Come find out. USDM is the first fiat-backed stablecoin on #Cardano. Every minted USDM is backed by the US dollar on a 1:1 ratio. Minting of USDM is initially available in 17 US states. See Figure 1. The minting and burning process is as follows: Users in eligible jurisdictions can connect their Cardano wallet to the Mehen dApp, complete identity verification (KYC), and link a bank account. The minting of USDM is only possible if USD is deposited into a linked bank account. For every USD deposited, one USDM token is minted. Once a user has USDM tokens on their blockchain address, they can send them to another address or use them in a DeFi application. KYC-cleared users can redeem USDM 1:1 for USD, which is then sent to a linked bank account. The corresponding USDM tokens are burned to maintain the 1:1 peg. While minting USDM does not incur fees, redeeming US dollars for their USDM will incur a 1.5% fee, with a minimum fee of $50 and a maximum of $5000. Mehen USDM is transparently verified by a 3rd party Oracle service Charli3, ensuring that every mint and burn is authenticated. Charli3 has API access to the bank accounts to verify all token mints and burns. Charli3 is tasked with verifying the bank’s reserve balances before every minting operation of USDM and broadcasting this information publicly on-chain. This unique approach to reserve verification ensures that the value of each USDM token is fully backed by real-world fiat reserves at all times. Mehen is a registered money services business with the Financial Crimes Enforcement Network (FinCEN), ensuring that its operations meet the highest standards of financial integrity. In terms of user verification, anyone can hold, transfer, or use USDM without undergoing KYC procedures. Only users wishing to mint new USDM with fiat or redeem USDM for fiat will undergo a simple KYC process, aligning with global regulatory standards. By design, Cardano's native assets do not permit the freezing of accounts or censoring of transactions. This characteristic makes USDM, a unique stablecoin in the crypto industry, immune to confiscation or spending restrictions imposed by any entity. Cardano treats tokens identically to $ADA coins in terms of transfer and ownership. The protocol does not require a smart contract to facilitate token transfers. Instead, tokens are UTxOs stored directly in the ledger. See Figure 2. To put it simply, it’s not feasible to incorporate code into a smart contract that would restrict stablecoin holders, as token transfers do not utilize a smart contract. Instead, a script is employed by the Mehen team to facilitate the minting and burning of USDM tokens. Mehen's policy ID: c48cbb3d5e57ed56e276bc45f99ab39abe94e6cd7ac39fb402da47ad