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.”
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