🔥Ethena: A DeFi Game Changer

@ethena_labs recently secured $14 million in funding (February 16, 2024) from prominent investors like Dragonfly Capital, Binance Labs, Paypal, and Fidelity.

But what exactly is Ethena? Let's dive in⬇️

1/What is Ethena?
Ethena Labs pioneers a decentralized stablecoin issuance protocol on Ethereum.

It offers a stablecoin solution independent of traditional banking systems, along with a USD savings tool called Internet Bond.


2/ Noteworthy Features:

• Scalability through derivatives without overcollateralization.

• Stable value ensured through non-leveraged short positions on Liquid Staking Tokens (LST) upon USDe issuance.

• Anti-censorship by separating collateral assets from banking systems.


3/ USDe Issuance Mechanism:
Users deposit Liquid Staking Tokens (LST) like stETH, rETH into Ethena to mint USDe. Ethena opens non-leveraged short positions on derivatives exchanges, balancing short positions against price volatility.116


4/ Security on-chain:
Ethena employs a collateral distribution mechanism through diverse MPC custody contracts on-chain, reducing dependency on centralized servers and minimizing counterparty risk.


5/ Flexible Leverage Unlocking:
USDe generates fixed profits for users through staking rewards from LST and funding rates from short positions. Ethena also allows minting USDe based on LST to maintain long-term exposure to Ethereum while providing liquidity for USDe.


6/ Token Details:

• Token Name: Ethena Token (ENA)

• Blockchain: Ethereum

• Token Standard: ERC-20

• Total Supply: 15,000,000,000 ENA

• Initial Supply: 1,425,000,000 ENA

• Allocation: Core Contributors (30%), Investors (25%), Foundation (15%), Ecosystem (30%).


Disclaimer: This thread is for informational purposes only and should not be considered financial advice. Please conduct your own research before making any investment decisions

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