Ethena Labs is a project focused on creating a stablecoin called USDe and what they call an "Internet Bond" Concept. Here's a deeper dive into #Ethena!
#EthenaLabs has introduced two new concepts for crypto assets, including: Stablecoin (#USDe) & Internet Bond Concept
1. Ethena's USDe Stablecoin:
Designed to be a stable digital asset pegged to the US dollar. They achieve this peg through a strategy called "delta-hedging" using Ethereum collateral. This means they use derivatives to manage the price fluctuations of $USDe.
Mechanism: Unlike traditional stablecoins backed by real-world assets (like USD), Ethena uses an algorithm and smart contracts to manage USDe's peg.
Hedging with Derivatives: Ethena utilizes "delta-hedging" with Ethereum (ETH) as collateral. This means they use perpetual swaps, a type of derivative contract, to automatically buy or sell ETH to maintain USDe's price stability. Essentially, they are dynamically adjusting their holdings based on market movements.
Features
Price stable: is provided through hedges executed against the transferred assets immediately on issuance that ensures the synthetic USD value of USDe backing in all market conditions.
Capital Efficient: is achieved by utilizing derivatives which allows for USDe to scale with capital efficiency. Since the staked $ETH collateral can be perfectly hedged with a short position of equivalent notional, the synthetic dollar only requires 1:1 "collateralization."
Decentralized: by separating backing from the banking system and storing trustless backing assets outside of centralized liquidity venues in onchain, transparent, 24/7 auditable, programmatic custody account solutions.
Benefits:
Decentralized: USDe operates on the Ethereum blockchain, offering transparency and censorship resistance.
Scalable: They aim to handle a high volume of transactions efficiently.
Earning Potential: Ethena might integrate ways for users to earn interest on their USDe holdings in the future.
2. Ethena's Internet Bond
This is a new concept where Ethena Labs offers a dollar-denominated savings instrument with yields generated through staking and derivatives. This essentially allows users to earn interest on their holdings. It functions similarly to a traditional savings bond, but operates on a blockchain.
Earning Mechanism: The details are not entirely clear, but Ethena likely uses a combination of staking USDe and derivatives to generate yields for bondholders. Staking involves locking up your crypto assets for a set period to earn rewards.
Benefits:
Dollar-denominated returns: Investors can potentially earn a return on their investment tied to the US dollar, offering some protection against crypto price volatility.
Accessibility: Ethena aims to make this a globally accessible savings tool through DeFi (decentralized finance).
3. Recent Success
- Ethena Labs launched their project in March 2023.
- They've shown early signs of success, generating over $4M for their USDe treasury within two weeks.
- This revenue stream positions them as a significant player in the crypto market.
4. ENA token information
Token name: Ethena
Symbol: $ENA
Total supply: 15 billion ENA
Initial circulating supply: 1.425 billion ENA
Allocation
Core contributors: 30%
Investors: 25%
Foundation: 15%
Ecosystem development: 30%
Features
Governance, voting on important issues such as establishing risk monitoring mechanisms, reserve fund allocation ratios, adding collateral assets for USDe, and developing new products...
Airdrop
- On March 28th, Ethena Labs announced the distribution of a whopping 750 million $ENA tokens through an airdrop.
- Users who hold "Shards" - digital units earned through interacting with the Ethena ecosystem - are in line to claim their share of the #airdrop.
- The party starts on April 2nd! You'll have 30 days to claim your $ENA tokens through the official claiming portal.
But if you aren't eligible for the Airdrop, You can stake $BNB or $FUSD on Binance to get #ENA for free. 👇
Ethena Binance LaunchPool
Period: 2024-03-30 00:00 (UTC) to 2024-04-01 23:59 (UTC).
Binance will then list $ENA at 2024-04-02 8:00 (UTC) and open trading with ENA/BTC, ENA/USDT, ENA/BNB, ENA/FDUSD and ENA/TRY trading pairs. The Seed Tag will be applied to ENA.
ENA launchpool details:
Token Name: Ethena ($ENA)
Max Token Supply: 15,000,000,000 ENA
Launchpool Token Rewards: 300,000,000 ENA (2% of max token supply)
Initial Circulating Supply: 1,425,000,000 ENA (9.5% of max token supply)
Smart Contract Details: #Ethereum
Staking Terms: KYC required
Hourly Hard Cap per User:
333,333.33 ENA in $BNB pool
83,333.33 ENA in $FDUSD pool
Supported pools:
Stake BNB (webpage will be available in around 5 hours): 240,000,000 $ENA in rewards (80%)
Stake FDUSD (webpage will be available in around 5 hours): 60,000,000 $ENA in rewards (20%)
Created by: #web3daily Research. #MANTA/USDT. #BinanceLaunchpool