Coinspeaker
Ethena Labs Leverages Bitcoin to Enhance USDe Stability

This strategic decision not only diversified the collateral base of USDe but also tapped into Bitcoin’s robust market value and widespread trust within the crypto community.

Excited to announce that Ethena has onboarded BTC as a backing asset to USDe

This is a crucial unlock which will enable USDe to scale significantly from the current $2bn supply pic.twitter.com/FOZRWBrVZV

— Ethena Labs (@ethena_labs) April 4, 2024

Ethena’s strategy involves generating yields by shorting futures of cryptocurrencies such as Ether (ETH) and now BTC, which has proved both profitable and controversial. By pocketing funding rates from these shorts, Ethena has boasted an APY of 37% for its users. The integration of Bitcoin, with its larger open interest of $25 billion compared to ETH’s, is seen as a strategic move to enhance USDe’s scalability and liquidity, potentially increasing the synthetic dollar’s issuance capacity by more th...