#Ethena Labs

[dencyemily]

Ethena Labs Unveils Groundbreaking USDe Stablecoin in Major Cryptocurrency Move

Ethena Labs' recent foray into the stablecoin market with the launch of USDe brings forth a paradigm shift, challenging the status quo of fiat-backed stablecoins with its decentralized, crypto-native approach. The $130 billion stablecoin landscape has been dominated by traditional models, but Ethena's USDe introduces a novel concept backed by staked ETH and short ETH hedges.

At the heart of Ethena's strategy lies the "Shard Campaign," a unique initiative designed to encourage long-term community engagement. The campaign, announced on social media platforms, is structured to reward users for various activities, including providing liquidity and minting USDe. This departure from conventional incentive models aims to create a more dedicated user base, although the decay mechanism reducing rewards over time highlights the importance of early participation.

Shards, the currency of the campaign, symbolize users' contributions to Ethena's ecosystem and can be redeemed for future rewards, potentially in the form of the project's token through a future airdrop. Activities such as Liquidity Provision, holding USDe, staking sUSDe, and referring friends to the platform enable users to accumulate Shards, each with its own multiplier.

Ethena Labs places a significant emphasis on regulatory compliance, ensuring that USDe and its staked version, sUSDe, operate within legal frameworks. The backing of $14 million in funding from renowned investors like Dragonfly, Bybit, and Gemini adds credibility to their efforts.

However, the disruptive nature of USDe's design introduces complexities. Unlike traditional stablecoins relying on fiat reserves, USDe involves counterparties such as liquid staking protocols and derivatives exchanges, exposing users and investors to potential risks that need careful consideration.

For those intrigued by Ethena's venture into uncharted stablecoin waters, a thorough evaluation of the "Shard Campaign" details is essential. Understanding the inherent risks associated with USDe's design and its reliance on external parties is crucial for investors and users considering involvement in this innovative approach.

As Ethena Labs' USDe shakes up the stablecoin market, the journey ahead is filled with both opportunities and risks. The success of this disruptive model will unfold over time, shaping the narrative of stablecoins in the ever-evolving cryptocurrency landscape.

[cksonjoy]

Bybit Update: Ethena Labs Addresses Bybit Hack Concerns, Confirms USDe Reserves Are Secure

See more

[cgnews]

Ethena reveals roadmap for 2025, eyes Telegram payment app

Ethena Labs published its roadmap for 2025 on Jan. 3, which included the reveal of a Telegram application for payments and savings based on its sUSDe stablecoin, aiming to offer a “neobank experience.” The initiative allows users to send, spend, and save sUSDe directly within the messaging app. Additionally, users can effortlessly transition between sUSDe savings and direct mobile payments via…

[thesocialchronicles]

Grayscale’s research arm has updated its list of the top 20 cryptocurrency assets to watch in Q1 2025. Based on several factors, Grayscale Research has updated its list of cryptocurrencies with potential in Q1 2025. The list features six new diversified tokens, including HyperLiquid (HYPE), Ethena Labs (ENA), Virtuals Protocol (VIRTUAL), Juputer (JUP), Jito (JITO), and Grass (GRASS). Chainlink (LINK), Helium, and Optimism (OP) reentered the top 20, while Celo was excluded from the updated list. Grayscale Research considered several metrics, including network adoption, growth catalysts, fundamentals, tokenomics, supply data, and potential tail risks, to compile its “Top 20” list. The updated list includes assets in decentralized finance, staking and liquid staking, Solana’s ecosystem, and artificial intelligence. Grayscale researchers highlighted that these areas are likely to gain more investor and regulatory attention in Q1 2025. The research division also noted continued bullishness for sectors like Ethereum layer-2 networks and tokenization. In addition to the new themes mentioned above, we continue to be excited about themes from previous quarters such as Ethereum scaling solutions, tokenization, and decentralized physical infrastructure (DePIN). Each of these themes is represented by the inclusion of protocols that return to the top 20, such as Optimism, Chainlink, and Helium, respectively. Grayscale Research In other Grayscale-related news, the investment manager filed a Form 8-K for a Horizon Trust with the U.S. Securities and Commission last week. The firm also launched individual trust products underpinned by Lido DAO (LDO) and Optimism. 2024-12-30 17:24:23 https://crypto.news/app/uploads/2024/08/crypto-news-bull-trading-chart-option06.webp

[quantarai]

Usual Raises $10 Million in Series A Funding Round Led By Kraken, Binance Labs

In a latest development, Usual has secured substantial funding of $10 million in its Series A round, led by Binance Labs and Kraken Ventures. Other backers included Galaxy Ventures, Guy from Ethena, Ondo, Coinbase Ventures, IOSG Ventures and OKX Ventures. Usual has distinguished itself in the competitive stablecoin market with its unique approach to digital currency. It has secured over $1.4…

[blockchainfeed]

Trump-Linked World Liberty Financial Partners with Ethena Labs World Liberty Financial (WLFI), a decentralized finance (DeFi) endeavor linked to political figure Donald Trump, is stepping into the limelight through its collaboration with Ethena L #Blockchain #Crypto

[newsclickofficial]

Ethena Labs has introduced USDtb, a stablecoin that’s got the backing of Blackrock’s USD Institutional Digital Liquidity Fund (BUIDL). Ethena Unveils USDtb, a New Stablecoin With Blackrock Support Crafted in collaboration with Securitize, a top dog in real-world asset (RWA) tokenization, USDtb brings cash-backed steadiness and the magic of cross-chain operations to the table. This […]

[cryptogirl2024]

 Ethena Labs Proposes Adding Solana (SOL) as USDe Collateral

Ethena Labs proposes adding Solana (SOL) as new collateral for the USDe stablecoin.

If the proposal is approved, it will diversify USDe’s collateral by $100-200M in SOL.

Analysts see a bullish pattern for ENA, suggesting a potential 100-120% price increase.

Ethena Labs, the company that developed the synthetic stablecoin USDe, has recommended adding Solana (SOL) to the assets that back USDe. This strategic plan will expand and enhance security to USDe's collateral. Currently, SOL is awaiting approval as a new investment proposal from Ethena’s Independent Risk Committee.

USDe’s Synthetic Model

Stablecoins like Tether (USDT) and Circle’s USD Coin (USDC) are backed by fiat reserves at 1:1. However, synthetic stablecoins like USDe, which work on a synthetic model, use collateralized stablecoins and a hedged cash–and–carry trade approach to retain its $1 price peg. This approach entails using futures contracts of large notional value to control the stablecoin's value.

If this proposal is approved, Ethena Labs will be allowed to use $100-200 million in SOL as collateral, or 5-10% of Solana's global open interest. This is similar to the previous approach that Ethena undertook to ensure that it would use Bitcoin (BTC) and Ethereum (ETH) to back the USDe stablecoin.

Ethena also explores using Solana liquid staking tokens (LSTs), such as BNSOL and bbSOL. These would function similarly to ETH LSTs, which comprise one-third of Ethena’s ETH collateral allocation.

Boost in Collateral

On Thursday, Ethena Labs announced that it will commit $46 million of its reserve fund for USDe to be invested in tokenized real-world assets. The investments include BUIDL of BlackRock, USDM of Mountain, USTB of Superstate, and Sky USDS. This approach aligns with a developing pattern in DeFi of creating earnings from asset-backed tokens.

Related:

The market analysts are optimistic about the proposition made by Ethena, especially the effects it will have on the price of ENA. On Monday, in an X post, analyst ZAYK Chart pointed out the formation of a bullish price structure for the ENA token. He suggested a breakout could increase prices by 100% and 120%. 

Increasing Investor Confidence

This positive outlook is based on the belief that SOL will help increase confidence in USDe stablecoin when it is added as collateral. The move is also expected to foster higher market value growth for ENA. As of press time, ENA is valued at $0.3884, which has risen by 14.68% in the last 24 hours.

Since the proposal’s announcement, ENA’s price has been trending upward, reflecting growing investor interest. The Risk Committee’s decision is eagerly awaited, as SOL could solidify USDe’s stability and enhance ENA’s long-term performance in the DeFi market.

[turkishnyradio]

USDe Stablecoin Launches on Solana by Ethena Labs

[blockinsider]

Bybit & Ethena Join Forces to Unlock Breakthrough Rewards & Efficient Collateral Management with USDe

Bybit, the world’s second-largest crypto exchange by trading volume, is proud to announce the integration of USDe, a groundbreaking reward-bearing stable margin collateral, into its platform. This integration marks a significant milestone in empowering traders to efficiently manage their collateral while unlocking rewards and earning yields.

This strategic integration between Bybit and Ethena represents a forward-looking move that seeks to reshape the stablecoin landscape in the cryptocurrency industry. Bybit’s adoption of Ethena’s USDe introduces a new paradigm in trading rewards and collateral management.

“We are thrilled to announce this partnership with Ethena, aligning great minds to drive industry innovations,” said Ben Zhou, co-founder and CEO at Bybit. “Enabling USDe integration on Bybit offers us unparalleled strategic advantages in fostering and shaping a more vibrant and resilient crypto ecosystem. We look forward to the groundbreaking developments this partnership will bring, and the positive impact it will have on our users and the broader crypto community.”

“Ethena’s integration with Bybit is a significant step in driving use cases for USDe,” said Guy Young, CEO and Founder of Ethena Labs. “Offering USDe as collateral on Bybit which is one of the most important derivative venues in all of crypto will unlock USDe’s next wave of growth, further challenging the existing stablecoin hegemony with a tailored product purpose-built for crypto-natives.”

Key highlights of the campaign:

Users can enjoy a daily airdrop of up to 20% APR with USDe exclusively, coupled with a remarkable 90% collateral value ratio (CVR).

Users can effortlessly accumulate rewards by simply holding USDe, eliminating the need for staking or locking mechanisms.

Users will receive their rewards daily at 6AM UTC directly into their Funding accounts, without any minimum holding requirements.

Users can buy and sell with zero fees across both USDe/USDT and USDe/USDC spot pairs.

For more information, visit: https://announcements.bybit.com/en/article/supercharge-your-returns-with-usde-enjoy-up-to-20-apr-blt51cc40408924bb2c/

About Bybit

Bybit is the world’s second-largest cryptocurrency exchange by trading volume, serving over 37 million users. Established in 2018, Bybit provides a professional platform where crypto investors and traders can find an ultra-fast matching engine, 24/7 customer service, and multilingual community support. Bybit is a proud partner of Formula One’s reigning Constructors’ and Drivers’ champions: the Oracle Red Bull Racing team.

For more details about Bybit, please visit Bybit Press.

For media inquiries, please contact: media@bybit.com

For more information, please visit: https://www.bybit.com

For updates, please follow: Bybit’s Communities and Social Media

  Contact

Head of PR Tony Au Bybit tony.au@bybit.com

[coineagle]

Bybit & Ethena Join Forces to Unlock Breakthrough Rewards & Efficient Collateral Management with USDe

Bybit, the world’s second-largest crypto exchange by trading volume, is proud to announce the integration of USDe, a groundbreaking reward-bearing stable margin collateral, into its platform. This integration marks a significant milestone in empowering traders to efficiently manage their collateral while unlocking rewards and earning yields.

This strategic integration between Bybit and Ethena represents a forward-looking move that seeks to reshape the stablecoin landscape in the cryptocurrency industry. Bybit’s adoption of Ethena’s USDe introduces a new paradigm in trading rewards and collateral management.

“We are thrilled to announce this partnership with Ethena, aligning great minds to drive industry innovations,” said Ben Zhou, co-founder and CEO at Bybit. “Enabling USDe integration on Bybit offers us unparalleled strategic advantages in fostering and shaping a more vibrant and resilient crypto ecosystem. We look forward to the groundbreaking developments this partnership will bring, and the positive impact it will have on our users and the broader crypto community.”

“Ethena’s integration with Bybit is a significant step in driving use cases for USDe,” said Guy Young, CEO and Founder of Ethena Labs. “Offering USDe as collateral on Bybit which is one of the most important derivative venues in all of crypto will unlock USDe’s next wave of growth, further challenging the existing stablecoin hegemony with a tailored product purpose-built for crypto-natives.”

Key highlights of the campaign:

Users can enjoy a daily airdrop of up to 20% APR with USDe exclusively, coupled with a remarkable 90% collateral value ratio (CVR).

Users can effortlessly accumulate rewards by simply holding USDe, eliminating the need for staking or locking mechanisms.

Users will receive their rewards daily at 6AM UTC directly into their Funding accounts, without any minimum holding requirements.

Users can buy and sell with zero fees across both USDe/USDT and USDe/USDC spot pairs.

For more information, visit: https://announcements.bybit.com/en/article/supercharge-your-returns-with-usde-enjoy-up-to-20-apr-blt51cc40408924bb2c/

About Bybit

Bybit is the world’s second-largest cryptocurrency exchange by trading volume, serving over 37 million users. Established in 2018, Bybit provides a professional platform where crypto investors and traders can find an ultra-fast matching engine, 24/7 customer service, and multilingual community support. Bybit is a proud partner of Formula One’s reigning Constructors’ and Drivers’ champions: the Oracle Red Bull Racing team.

For more details about Bybit, please visit Bybit Press.

For media inquiries, please contact: media@bybit.com

For more information, please visit: https://www.bybit.com

For updates, please follow: Bybit’s Communities and Social Media

  Contact

Head of PR Tony Au Bybit tony.au@bybit.com

[chickbiz]

🚨 USDe IS BREAKING RECORDS THAT NO USD STABLECOIN EVER DID

👉 Just four months after its launch, Ethena Labs’ USDe stablecoin has already reached the $3 billion mark, making it the fastest stablecoin in history to achieve this milestone.

This rapid growth has placed USDe in fourth place, with a 3.3% share of the overall stablecoin market 📊

Reaching $3 billion faster than ever before signals increasing market confidence in stablecoins.

💹 Join FinUp today and get daily insights into the market 🔗 https://finup.ai

[cgnews]

Ethena Labs launches stablecoin backed by BlackRock’s tokenized fund shares

Ethena Labs announced the launch of its USDtb stablecoin, which will leverage  BlackRock’s tokenized fund, USD Institutional Digital Liquidity Fund (BUIDL), for 90% of its backing. According to the Dec. 16 announcement, the partnership was facilitated by Securitize. USDtb will operate independently from Ethena’s existing algorithmic stablecoin, USDe, providing users and exchange partners with a…

[thesocialchronicles]

Ethena Labs has announced the launch date of its synthetic USDe stablecoin on Dec. 16, 2024, as the token’s market cap reached $5.73 billion, an all-time high. In a post on X, Ethena Labs, built on the Ethereum blockchain, announced a possible launch for its stablecoin USDe which is pegged with the U.S. dollar. It is mainly built as a yield-generating asset rather than an intermediary for a transaction, similar to Tether (USDT) or USD Coin (USDC). Ethena Labs announcement of USDe stablecoin on X. In contrast to the traditional fiat-reserve-backed stablecoins, USDe derives its yield based on the staking rewards of Ethereum and keeps that reward away from the short funding rate for ETH. By doing so, it provides the holder with an attractive annual percentage yield of up to 29%. This double-layered yield model makes USDe a high-reward financial instrument in the decentralized finance space. Users have rapidly flocked to USDe, making it the third-largest USD-pegged stablecoin, overtaking DAI’s $4.7 billion, but is behind USDT and USDC, which have a market cap of $135 billion and $40 billion, respectively. According to CoinMarketCap, USDe’s trading volume increased by 24.27% in the past 24 hours to reach $171.09 million, indicating high demand for yield-bearing assets. How sustainable is the USDe stablecoin model? Ethena’s USDe has been compared to Terra-Luna, whose value also collapsed in 2022 because of its unsustainable growth model, by critics. Terra’s collapse was attributed to its struggles to maintain its peg in a bearish market, and experts fear USDe could suffer the same fate. USDe employs a delta-neutral trading strategy, balancing BTC and ETH long and short positions to maintain stability and yield. Ethena hedges the long stETH positions on centralized exchanges. In case a CEX goes down, the hedge may sit there;  Ethena’s positions open to unrealized profits and losses. In a bull market, since the funding rate stays positive, this technique will work well; however, in bear markets, once the funding rate becomes negative, the yield can go down.  Every so often we see something new in this space. I often find myself on the mid curve for an extensive amount of time. I am comfortable here. That being said, there have been events in this industry I wish I was more curious about, there have also been events I definitely did…— Andre Cronje (@AndreCronjeTech) April 3, 2024 Andre Cronje talks about Margin/Collateral model on X. “So while things are going great now (because market is positive and shorting funding rates are positive [because everyone is happy being long]), eventually that turns, funding becomes negative, margin/collateral gets liquidated, and you have an unbacked asset. The counter to that is “law of large numbers”, which is pretty much the same as UST’s $1bn BTC fund etc. It works until it doesn’t“.by Andre Cronje Andre Cronje, the Chief Technology Officer of Fantom Foundation, for example, has highlighted that USDe’s model may only hold in bullish market conditions, and its resilience in a bear market is unproven, drawing parallels to the collapse of Terra-Luna. Secondly, given the growing efficiency of the crypto market, the profit margins, known as the basis spread, could narrow, reducing the profitability of USDe’s high yields in the long run.   2024-12-13 05:21:36 https://crypto.news/app/uploads/2024/12/crypto-news-Ethena-Labs-USDe-option04.webp

[quantarai]

World Liberty Financial Partners with Ethena Labs to Enhance DeFi Ecosystem with sUSDe Integration

As per a latest develoment, World Liberty Financial, a decentralized finance (DeFi) platform backed by President-elect Donald Trump, will collaborate with Ethena Labs to enhance its ecosystem. The two firms are looking at “long-term collaboration,” which will kick off with an implementation of Ethena’s yield-bearing token, sUSDe. A governance proposal has been submitted to facilitate this…