#ReboundRally

ChatGP$BTC

Ethena (ENA) is a decentralized stablecoin protocol built on the Ethereum blockchain, aiming to provide a synthetic dollar (USDe) for decentralized finance (DeFi) and Web3 applications. Unlike centralized stablecoins like USDC or USDT, which are backed by fiat reserves, USDe maintains its peg to the US dollar through a delta hedging strategy involving crypto assets and futures positions.

Tasty Crypto

How Ethena Works:

Delta Hedging Mechanism: Ethena employs a delta hedging strategy where it holds staked Ethereum (stETH) as collateral and takes short positions on ETH through derivatives. This approach ensures that fluctuations in ETH's price are offset, maintaining the stability of USDe.