Ethena Suggests SOL as Strategic USDe Backing Asset
Ethena has put forth a proposal to allocate SOL (Solana) as a backing asset for USDe, its decentralized stablecoin, using a similar hedging mechanism currently employed with Bitcoin (BTC) and Ethereum (ETH) perpetual futures. This move could provide new opportunities for the protocol to generate revenue by tapping into SOL's open interest and favorable funding rates.

The Risk Committee will closely evaluate the plan, considering SOL's shorter trading history and relatively lower liquidity compared to BTC and ETH. Ethena will scale into the SOL market cautiously, aiming to maintain market balance while taking advantage of the projected growth.
SOL Potential to Boost Protocol Revenue
In August, Ethena introduced USDe on the Solana blockchain, marking a significant step in the expansion of the protocol. With SOL perpetual futures offering better funding rates than BTC and ETH in 2024, there is an opportunity for Ethena to align with one of the largest blockchain ecosystems, potentially boosting revenue as market conditions improve.
The proposal highlights that SOL’s $2 billion in open interest across various trading platforms, where Ethena already operates, could allow the protocol to scale its USDe supply from the current $2.5 billion and meet increasing market demand. The initial target is to hedge $100-200 million in SOL positions, which would account for 5-10% of SOL’s open interest.
Risk Committee’s Role and Next Steps
The Risk Committee is expected to deliberate and approve the proposal, with SOL Liquid Staked Tokens like BNSOL (Binance) and bbSOL (Bybit) also being considered as part of the allocation. These assets would follow a similar pattern to the current ETH LST allocation within USDe’s backing, not exceeding one-third of the total SOL allocation.
The committee has seven days to respond and vote on the proposal. If approved, SOL will become part of the USDe backing, further strengthening Ethena’s presence in the Solana ecosystem.
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ENA coin Aka Ethena Project Started On March 30, and coin released on April 2
The Launch Price For $ENA coin was around 0.60$
during this time period we all witnessed significant drop on market. Most coins had rough time
Correct me if I’m wrong but I didn’t saw this coin value drop below 0.70$ even when whole market crashed.
so my view is this coin has stronger potential , we can’t guarantee if this coin will reach 2$ but i’m positive this coin has some good future.
If you wanna invest on this coin its your choice but remember this coin moves very slowly so as always patience is the key to success.
( This is my opinion about $ENA Project , Do not take this as a investment advice , DYOR)

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