đ„Ethena: A DeFi Game Changer
@ethena_labs recently secured $14 million in funding (February 16, 2024) from prominent investors like Dragonfly Capital, Binance Labs, Paypal, and Fidelity.
But what exactly is Ethena? Let's dive inâŹïž
1/What is Ethena?
Ethena Labs pioneers a decentralized stablecoin issuance protocol on Ethereum.
It offers a stablecoin solution independent of traditional banking systems, along with a USD savings tool called Internet Bond.
2/ Noteworthy Features:
âą Scalability through derivatives without overcollateralization.
âą Stable value ensured through non-leveraged short positions on Liquid Staking Tokens (LST) upon USDe issuance.
âą Anti-censorship by separating collateral assets from banking systems.
3/ USDe Issuance Mechanism:
Users deposit Liquid Staking Tokens (LST) like stETH, rETH into Ethena to mint USDe. Ethena opens non-leveraged short positions on derivatives exchanges, balancing short positions against price volatility.116
4/ Security on-chain:
Ethena employs a collateral distribution mechanism through diverse MPC custody contracts on-chain, reducing dependency on centralized servers and minimizing counterparty risk.
5/ Flexible Leverage Unlocking:
USDe generates fixed profits for users through staking rewards from LST and funding rates from short positions. Ethena also allows minting USDe based on LST to maintain long-term exposure to Ethereum while providing liquidity for USDe.
6/ Token Details:
âą Token Name: Ethena Token (ENA)
âą Blockchain: Ethereum
âą Token Standard: ERC-20
âą Total Supply: 15,000,000,000 ENA
âą Initial Supply: 1,425,000,000 ENA
âą Allocation: Core Contributors (30%), Investors (25%), Foundation (15%), Ecosystem (30%).
Disclaimer: This thread is for informational purposes only and should not be considered financial advice. Please conduct your own research before making any investment decisions
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