According to Ethena, UStb exists as an independent instrument with a different risk profile than USDe: while USDe is a synthetic stablecoin that maintains a peg to USD1 through cash-and-carry arbitrage, UStb is backed by real assets and UStb has a more traditional stable coin structure.
the company says UStb can support USDe in challenging market conditions; Ethena's governance structure allows reserve assets to be reallocated from USDe to UStb as needed, potentially reducing the risks associated with negative funding rates.
UStb can also help USDe weather difficult market conditions, Ethena Lab said in a press release. During periods of negative funding, USDe hedging positions can be closed and reserve assets reallocated to USTB.
Ethena plans to offer UStb on centralized exchanges such as Bybit and Bitget, where USDe is already used as margin collateral; the addition of UStb will give exchange partners a choice between two different margin collateral products, allowing Ethena's stable coin solution and potentially expanding the use of the coin solution.
Since the announcement, Ethena Labs' managed ENA tokens have risen significantly in value. Over the past 24 hours, the price of ENA has increased by about 14%, from $0.307 to $0.378. Trading volumes also increased significantly to approximately US$196.1 million.
The market capitalization of USDe, Etena's flagship product, however, declined slightly on the day of the announcement by US$13 million to US$2.54 billion.
The launch of UStb is a continuation of ethena's commitment to innovation in decentralized finance (DeFi). The company aims to turn #Ethereum into a stable #cryptocurrency ecosystem that operates independently of the traditional banking system.
The ethena approach utilizes delta-neutral strategies, on-chain depo and derivatives to manage volatility and increase scalability and stability. The addition of UStb to the product lineup will provide users and exchange partners with a variety of options. This demonstrates the company's commitment to providing stable coin options.
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