Ethena is a synthetic dollar protocol built on Ethereum that provides a crypto-native solution for money that does not rely on the infrastructure of the traditional banking system, alongside globally accessible dollar-denominated instruments - 'Internet Bonds'. Ethena's synthetic dollar, USDe, provides a crypto-native and scalable solution for money achieved with the delta-hedging collateral of Ethereum and Bitcoin. USDe is fully supported (subject to discussion in the Risk section regarding events that could potentially result in loss of support) and is free to create across DeFi.

USDe peg stability is supported through the use of delta hedging derivative positions against the collateral held by the protocol.

The 'Internet Bond' combines the returns earned from the staked asset (e.g. staked Ethereum), to the extent used as a backing asset, as well as funding & base spread from perpetual and futures markets, to create the first onchain crypto-native solution for money.

(Source from the official Ethena website)

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