The project is well-known and I don't think it needs any introduction. Let's talk about Ethena today. In recent years, with the widespread use of cryptocurrencies, the demand for stablecoins has also been growing, becoming an important part of the entire financial ecosystem. However, most stablecoins currently still rely on the traditional banking system, which not only exposes them to centralized custody risks, but also exposes a series of problems such as compliance and transparency.
Ethena's vision was born to solve these problems. It is committed to creating a truly independent financial system through innovative products and providing users with safer and more efficient financial tools.
1.
When users choose stablecoin products, reputation and stability are key factors. Ethena announced that UStb will be backed by BlackRock and Securitize, and this product will operate in a similar way to traditional stablecoins. This lays a solid foundation for the reputation and stability of Ethena and new products:
First of all, these two companies enjoy a high reputation in the financial industry. In particular, BlackRock, as the world's largest asset management company, its influence and professionalism in the capital market undoubtedly provide strong endorsement for USTb.
Secondly, the addition of BlackRock and Securitize has made USTb not just a crypto product in the minds of users, but a credible choice that is highly integrated with the traditional financial system.
Finally, as a digital securities platform with strong compliance, Securitize’s participation also means that USTb will follow strict compliance standards. This provides users with greater transparency, allowing them to feel safe and stable when choosing Ethena’s products.
The launch of USTb enables Ethena to provide an alternative comparable to traditional financial assets, becoming an important consideration for users when preserving capital. UStb will be a product independent of USDe, providing users and exchange partners with a new option with different risk characteristics. This product differentiation strategy not only enriches Ethena's product line, but also increases the flexibility of users in choosing stablecoins.
2.
Let’s look at USDe, which has been providing good services to users for quite a long time. Let’s first understand the core challenges facing stablecoins in the current market - centralized custody risks, dependence on the traditional banking system, and the fragility of decentralized stablecoins in terms of scale and mechanism design.
Traditional stablecoins, such as USDC and USDT, provide stability and liquidity to a certain extent, but their flaws are also obvious. First, they rely on the centralized banking system, which exposes users to potential compliance risks and fund security issues. Secondly, centralized stablecoins often have the problem of internalizing returns, and users cannot enjoy the returns generated by pledged assets. Although over-collateralized stablecoins provide a certain degree of security in theory, they often face the problem of insufficient liquidity in actual operations. Algorithmic stablecoins face extremely high market risks due to their fragile mechanism design.
Ethena has proposed an effective solution through its unique design. The launch of USDe allows users to obtain stable returns through the income of pledged assets and transactions in the derivatives market. This mechanism ensures the stability, scalability and anti-censorship of USDe.
As Ethena's synthetic dollar, USDe is designed to provide users with a reliable, decentralized stablecoin. Compared with traditional USDC and USDT, USDe is not just a simple substitute, but also a brand new ecosystem.
The community has expressed concerns about USDe's performance in a negative interest rate environment, and Ethena has not only not experienced any week of negative interest rates in the past six months, but has also demonstrated its ability to flexibly respond to market changes. When necessary, USDe's support portfolio can be dynamically adjusted, including switching between base positions and liquidity stabilization products in different interest rate environments. In addition, Ethena can reallocate hedging positions to USTb when necessary, thereby better mitigating risks in a negative interest rate environment.
The biggest advantage of USDe is its high yield. The annualized rate of return (APY) of sUSDe has shown some fluctuations in the past month, but the overall trend is relatively stable and has upward potential.
Starting from September 18, sUSDe APY showed a high starting point, and then experienced some ups and downs. However, since the beginning of October, sUSDe APY has quickly recovered and showed a strong upward trend in the figure, approaching the 15% level. Such a growth trend indicates that sUSDe's performance in the market is becoming more and more stable, and it may continue to bring higher returns to investors in the future. This income mainly comes from the pledged assets held by Ethena and the transactions in the derivatives market. This design enables USDe to not only meet the liquidity needs of users, but also create stable income for users.
4.
Ethena is positioned to fill the huge demand for decentralized stablecoins in the global financial market. In order to gain a foothold in the global market, Ethena not only needs to provide stable products, but also a reliable economic support system. ENA is one of the keys to this support system, and it plays an important role in promoting decentralized governance, improving transparency, and enhancing user confidence.
After October, ENA’s price trend showed a clear upward trend, and this positive change can be strongly supported by the performance of trading volume and Median APY.
First, the trading volume began to increase gradually in October, which shows that the market activity has improved and more investors have begun to pay attention to ENA and participate in its transactions. The increase in trading volume often means that the market's interest and confidence in assets are increasing, which provides strong support for the rebound of ENA prices.
In addition, Median APY also showed signs of recovery during this period. The rise in Median APY means that the yield of staking ENA has increased, which has attracted more users to participate in staking and investment, further enhancing the market's demand and trust in ENA.
Combined with the increase in trading volume and the rise in Median APY, it can be inferred that the upward trend in ENA prices is based on the restoration of market confidence and wider user participation. These factors have jointly driven ENA's positive trend after October and laid a solid foundation for future growth.
5.
In this era of booming cryptocurrency and decentralized finance, Ethena is at an excellent time. Ethena plans to continue to expand to more centralized exchanges based on its existing cooperation with Bybit and Bitget, providing these partners with two different product options for margin collateral. Ethena's rapid product iteration and continued market expansion highlight Ethena's commitment and execution in providing the best financial services to users and partners. I think the trend of ENA and the development of Ethena in the future are worth paying attention to.
