Ethena Labs is working with BlackRock to launch a new stablecoin, UStb (USTB). This exciting project will leverage BlackRock’s Tokenized USD Institutional Digital Liquidity Fund (BUIDL), which maintains a stable value of $1 per token. UStb will sit alongside Ethena’s existing synthetic USD stablecoin USDe (USDE), providing users with a new and reliable option!

Why choose UStb?

UStb will bring a unique twist to Ethena's stablecoin lineup, offering a unique product with a different risk profile than USDe. While USDe has withstood tough market conditions since its launch, the introduction of UStb will further stabilize the ecosystem, especially during periods of weak funding rates. The team said the presence of UStb will indirectly benefit Ethena USDe, because if market conditions are really bad and funding rates turn negative, it may consider using governance mechanisms to close USDe hedging positions and gradually switch to adding UStb: The team also said that they are working with Bybit and Bitget to allow the use of UStb as margin collateral: After the announcement, Ethena's token ENA rose 16%, reflecting strong market interest.

Dynamic Duo: USDe and UStb

Ethena Labs aims to create a flexible system that allows USDe and UStb to work together. In the event of adverse financing conditions, USDe will automatically adjust its support by integrating UStb, providing a stable solution in various interest rate environments. This dual approach ensures that users continue to benefit from both products, thereby maintaining the robustness and adaptability of the ecosystem.

By joining UStb, Ethena ensures that its platform remains resilient no matter how the market changes. By combining synthetic USDe with the liquidity stability of UStb, Ethena is ready to meet future challenges while providing more choices and enhanced security to its users!