Farming ENA: Ethena project launched on Binance Launchpool
The world's largest cryptocurrency exchange, Binance, announced the launch of the next - 50th - project on its Launchpool platform: a new product called Ethena with a native token ENA.
Ethena (ENA) is a DeFi protocol for the synthetic dollar USDe on the Ethereum network. USDe is a stablecoin that pays profits from liquid staking tokens like stETH, coupled with short positions on the Ethereum futures market.
The essence of the whole activity is to achieve a neutral position on ETH and then receive a net income from staking (a kind of delta hedging of the Ethereum collateral in staking). This practice in fiat markets is called “carry trade” - a strategy for making a profit due to different interest rates on the currencies of different countries.
Those. USDe is not the same as the usual stablecoins like USDC or USDT. Essentially, USDe is backed by crypto assets and corresponding short futures positions. USDe parity with the underlying asset is achieved through the use of delta hedging derivatives positions against collateral held by the protocol.
