% 0.05
BTC Dominance:
% 0.13
Market Cap:
$2.34 T
% 0.00
Fear & Greed:
53 / 100
$ 64.258
BTC Dominance:
% 54.1
Market Cap:
$2.34 T

Ethena Aims to Rise Security on USDe

Ethena Labs

Ethena, aiming to enhance the security of its USDe synthetic dollar product, is incorporating Bitcoin as a backing asset, adopting a cash-and-carry trade strategy.

Through this approach, the platform will short Bitcoin futures, leveraging funding rates to yield returns on its USDe tokens. Since its inception in January, Ethena has achieved a 37% annual yield by shorting Ether (ETH) futures and capitalizing on funding rates.

Despite criticism surrounding its strategy, Ethena has experienced sustained demand, issuing over $2 billion worth of USDe tokens. Designed to maintain a stable $1 peg, USDe offers a different backing mechanism compared to traditional stablecoins.

With the addition of Bitcoin, Ethena aims to further enhance user yields and expand USDe issuance. Developers highlight the platform’s ability to leverage Bitcoin’s market, with approximately $25 billion in open interest available for delta hedging, significantly bolstering scalability.

By diversifying its backing assets and leveraging Bitcoin’s liquidity and growth in derivative markets, Ethena anticipates a more robust and secure product for its users as it continues to scale towards $10 billion.

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