🚀🎉Big news, BTC enthusiasts! Ethena Labs, the brains behind USDe, have now incorporated Bitcoin as a backing asset into their synthetic dollar-pegged offering. This move is set to scale USDe’s supply from its current $2 billion mark. 📈💰

🔥In an announcement on April 4, Ethena Labs highlighted the strategic importance of incorporating BTC. Why? Well, it's all about scalability and liquidity. Over the past year, BTC’s open interest has surged from $10 billion to $25 billion, outpacing the growth of Ethereum (ETH) derivatives. 🚀

👀Ethena Labs recognized BTC’s superior liquidity and scalability for delta hedging, offering a more secure environment for USDe users. Plus, historical data shows BTC’s resilience during bear markets, outperforming ETH in terms of funding yields. 💪📊

🤔But wait, BTC lacks an inherent staking yield similar to staked Ether, right? True, but Ethena noted that staking yields of 3-4% are less impactful during bullish market conditions, where funding rates can surpass 30%. 🧐

🎯Ethena uses a delta hedging approach within the derivatives market to maintain USDe’s peg. This involves potentially holding short positions in Ether or ETH-related derivatives, which yield gains if the asset’s value decreases. As a result, Ethena can mitigate most of the downward fluctuations in USDe’s collateral. 🛡️

🎉With the integration of BTC, Ethena Labs aims to strengthen USDe’s backing, providing a safer and more reliable product for its users. The move also aligns with the company’s vision for the second season of the Sats Campaign, which is focused on expanding BTC integration. 🌐

🔍From April 5, users will have transparent access to BTC backing positions through Ethena’s dashboards. Stay tuned for more exciting updates! 🎉🚀