MegaETH’s USDm stablecoin pre-deposit launch hits 'turbulence' amid outages and cap flip-flops

MegaETH's rollout of 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.