Organization developing Ethereum-based synthetic dollar protocol, Ethena Labs, announced its integration with the Layer 2 network Scroll. This integration introduces the USDe stablecoin into the Scroll ecosystem, aiming to simplify and enhance the independence of on-chain financial systems.
Scroll functions as a scaling solution for Ethereum, focusing on security while utilizing advancements in scaling technology and zero-knowledge proofs by adding an extra layer to Ethereum. This approach aims to improve accessibility, responsiveness, and scalability, allowing for handling a greater number of concurrent users than Ethereum’s native infrastructure alone can support.
USDe is a synthetic dollar that operates independently of traditional banking systems. As a crypto-native and scalable monetary solution, it utilizes delta-hedging of cryptocurrency collateral to generate the USDe synthetic dollar with a separate value-accruing token in sUSDe.
According to a post by Scroll on the social media platform X, both centralized and decentralized finance platforms are facing challenges with existing stablecoins linked to traditional banking systems. Meanwhile, Ethena’s approach with USDe seeks to address this issue by reducing reliance on traditional banks, aiming to create a stronger and more resilient cryptocurrency ecosystem.
Therefore, integration of USDe with Scroll will enable faster transactions, lower fees, and improved security, all while maintaining a decentralized approach. This effort aims to empower users by providing open access to stable and secure assets.
Users can now engage with USDe on the Scroll platform through NURI and Ambient exchanges. Additionally, they may qualify to earn Scroll Marks by offering liquidity and lending USDe.
Excited to share our integration with @Scroll_ZKP
Thread below on how to get involved: https://t.co/ZnIEpSArfu
— Ethena Labs (@ethena_labs) July 23, 2024
Ethena Labs Partners With Lyra To Offer Users Greater Exposure To ETH Gains
Ethena Labs views USDe as a transformative tool for enhancing user interaction within the cryptocurrency market. Unlike traditional stablecoins, USDe offers several benefits, presenting a stable option for investors looking to engage with the cryptocurrency ecosystem without worrying about price fluctuations.
In February, the platform raised $14 million in a seed extension funding round led by DragonFly, Bybit, OKX, and other prominent investors. This funding followed earlier backing from Binance Labs, as the project participated in its Season 6 incubation program.
Recently, Ethena Labs forged a partnership with Lyra to provide users with greater exposure to ETH gains while minimizing the risk to their initial capital. This strategy allows users to earn 2.5 times the sUSDe yield during periods of ETH price increases while maintaining the standard sUSDe yield when ETH prices remain stable.
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