Seraphim, head of the growth department of Ethena Labs, the stablecoin protocol Ethena development company, mentioned the recent progress of the protocol on the community platform X on Sunday, including the proposal to use the Solana blockchain native token SOL as a collateral asset for the USDe stablecoin, and The new stablecoin UStb launched by Securitize and BlackRock, multiple cross-chain deployments of more than 3 million US dollars, promotes CeFi (centralized finance) to cover one billion users, etc.
Ethena non-stop shipping:– Onboard SOL as collateral proposal– USTB with Securitize and Blackrock– Multiple cross-chain deployments over 3m – Big CeFi push to reach billion users Add the FED cutting and possible Trump presidency and it’s a perfect setup for 10x growth
— Seraphim (@MacroMate8) October 13, 2024
A proposal on the Ethena Governance Forum recommends adding SOL as a backing asset for USDe in a controlled and planned manner, using hedging with Ethena’s current perpetual contracts for Bitcoin (BTC) and Ethereum (ETH) The mechanism operates in much the same way. In addition, the proposal also recommends considering BNSOL (Binance Liquidity Staking SOL) and bbSOL (Bybit Liquidity Staking SOL) as additional supporting assets for USDe.
The proposal states that SOL has approximately $2 billion in open interest on those venues where Ethena currently executes hedging trades, which coupled with more favorable funding rates relative to BTC and ETH so far in 2024, provides an attractive opportunities for Ethena and USDe to further collaborate with one of the largest ecosystems in crypto and potentially increase protocol revenue when market conditions improve.
The author of the proposal believes that in addition to potentially increasing protocol revenue through SOL funding rates, this move will also release an additional $2 to $3 billion in open interest, allowing Ethena to continue building on USDe’s current supply of approximately $2.5 billion. Scale up and keep up with any potential growth in market demand.
Related articles: (What is Ethena? A five-minute tutorial will help you understand the stablecoins USDe and Ethena) (The market funding rate has turned negative! The stablecoin protocol Ethena has turned from profit to loss, facing the biggest challenge since its launch)
Source
