☑️Ethena Launches Stablecoin UStb Backed by BlackRock's BUIDL Fund

🟢Ethena's new stablecoin UStb is claimed to be a completely independent product from USDe, and is expected to invest its reserves in BlackRock's BUIDL fund.

🟢On the evening of September 26, 2024, Ethena (ENA) announced that it is preparing to launch a new stablecoin product called UStb, developed in collaboration with BlackRock's real-asset tokenization platform Securitize.

🟢According to the announcement, UStb is designed to function similarly to traditional stablecoins and is expected to invest its reserves in the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on the Ethereum network.

🟢Ethena Labs' stablecoin USDe is pegged to its value through an arbitrage mechanism. USDe differs from traditional stablecoins in that:

🔖Using derivative insurance strategies (delta-hedging, also known as Delta Neutral Trading Strategy) to mitigate depeg risks, instead of relying on fiat currencies or real assets.

🔖Using crypto assets as collateral, such as ETH, BTC, Solana... with a creation and redemption system based on price differences to maintain a fixed 1 USD.

🔖USDe generates yield through a "cash-and-carry" strategy, allowing users to lock ETH or ETH liquid staking tokens to issue USDe, thereby paying ETH staking interest and funding rate futures to holders.

📌Operates in the DeFi ecosystem, but USDe's collateral and operations involve centralized exchanges (CEX) and third-party custodians.