At the end of March, Binance launched a launchpad event, where you can stake BNB or FDusd to get ENA for free.
Staking 10 BNB will get about 130 ENA, staking 10,000 FDusd will get 330 ENA, and the return rate will reach 2.6% on the 3rd.
In this article, let’s learn about what Ethena is and what its future development is expected to be.
What is Ethena?
Ethena is a synthetic dollar protocol built on Ethereum that does not rely on the traditional banking system and has fully transparent on-chain support.
Internet Bond provides a globally accessible savings option based on USDe.
Ethena’s synthetic USD, USDe, provides a censorship-resistant, scalable, and stable crypto-native solution for funding enabled by Delta-hedged Ethereum collateral.
Ethena (ENA) provides an open hedge fund with USDe tokens, using liquid pledged ETH tokens as collateral to short an equal amount of ETH to create a portfolio with a delta of 0;
This configuration ensures that the net value of the assets held by Ethena does not fluctuate with changes in the underlying value of its assets, while earning income from ETH pledge and short contract rates.
What is USDe?
USDe is a stablecoin created by Ethena that always maintains a 1:1 exchange ratio with the US dollar; it will become a censorship-resistant, scalable basic asset for use in DeFi applications, combining the staking returns of Ethereum and the returns of the futures market .
USDe is completely open and transparent on the chain, freely constituted in the entire DeFi, and can be widely used as a DeFi basic asset.
USDe automates anchoring by performing programmed Delta hedging with the underlying collateral assets; its collateral assets are composed of equal amounts of spot ETH longs and futures ETH shorts.
How to participate in the Ethena Season 2 airdrop?
Ethena.fi is a synthetic dollar protocol. Users pledge ETH to mint USDe or purchase USDe, and pledge USDe in the protocol to obtain sUSDe, earning up to 35.4% APY; and receive ENA airdrop tokens by participating in USDe staking.
The first season of Ethena airdrop has ended. Users can obtain shards by purchasing USDe, staking sUSDe or locking LP tokens, and based on the shards, they can obtain the airdrop price of ENA governance tokens.
At present, the airdrop activity of the second quarter has been launched. The "Shards" of the first quarter have been replaced by "Sats", and the protocol has opened BTC as a supporting asset.
The Season 2 airdrop event will last for 5 months, until September 2, or until the USDe supply reaches $5 billion, whichever comes first.
BTC perpetual futures provide Ethena with approximately $25 billion in additional open interest for delta hedging, which is 2.5x the current size of ETH perpetual futures.
This data also means that USDe staking will still maintain high APY returns, not only obtaining staking returns, but also airdrops.
What are the future opportunities for Ethena?
Ethena Labs has raised more than $14 million in funding, including from Binance, Bybit, Mirana Ventures, Lightspeed and other institutions.
After ENA went online, the price stabilized from $0.5 to $0.8.
Stablecoins are one of the important tools in the crypto market. All major trading pairs on spot and futures platforms on centralized and decentralized platforms are denominated in stablecoin pairs, with more than 90% of order transactions and more than 70% on-chain. Settlement is all denominated in stablecoins.
USDT is currently the most widely used stable currency, with a market value of US$100 billion. However, centralization has been criticized and is also one of the potential risks.
Ethena is building a decentralized stablecoin protocol, USDe, that is fully supported, on-chain, scalable and censorship-resistant, providing a crypto-native, yielding, USD-denominated savings tool.
There is a huge market demand for stablecoins. If Ethena can solve the problems of stability and decentralization;
If it can continue to provide stakers with up to 35% AYP returns, it will undoubtedly be a huge success.
Of course, if USDe is minted with ETH as collateral, USDe cannot maintain stability and plummets to zero, which is also a potentially huge risk.
The above is just my personal opinion, no investment advice. I am Chuxiaolian, and I am paying attention to the encryption market and web3.
