Martha Ezeani 
Ethena USDe’s 27% Yield Raises Concerns
Ethena is set to launch its USDe stablecoin on the public mainnet with a unique Shard campaign aimed at incentivizing user engagement.
Ethena has announced that it will be launching its USDe stablecoin on the public mainnet in conjunction with a one-of-a-kind Shard campaign.
Through the provision of rewards that are contingent upon contributions, the purpose of this campaign is to encourage user participation in the ecosystem and get rewarded later on.
The public mainnet release of USDe is a big milestone for Ethena and the community that it serves. The Shard Campaign is an innovative strategy that serves the purpose of encouraging engagement and fostering long-term connections among users.
Ethena’s goal is to cultivate a thriving and engaged community that is committed to the success of the ecosystem by providing incentives for actions that take place inside it.
This technique is a break from the conventional methods of incentivization and it demonstrates Ethena’s dedication to the creation of user-centric designs and innovative product designs.” Epochs” are the names given to the many short-term seasons that make up the Shard Campaign’s organizational framework.
Each epoch is centered on a separate set of activities that are associated with the USDe stablecoin and the integration of the community. We committed to completing the campaign within three months or when the USDe supply reaches one billion dollars, whichever occurs first.
The campaign aims to avoid being drawn out in duration. Throughout the entirety of each epoch, participants are provided with incentives to participate in a variety of activities that aid in the maintenance of Ethena’s ecology.
Several activities fall into this category. These activities include providing liquidity for USDe Curve pools, minting using other stablecoins, utilizing USDe on money markets and so many more.
These actions boost liquidity, encourage community involvement and propel ecosystem development. Participants in the Shard Campaign at an earlier stage have the opportunity to obtain more rewards as the number of Shards awarded during each Epoch diminishes over time.
Users are encouraged to participate early to optimize the incentives they receive using this decay mechanism. Participants have the opportunity to earn a larger share of rewards and actively contribute to the expansion and development of Ethena’s ecosystem if they get involved from the very beginning.
The Shard Campaign specifically targets users dedicated to contributing to Ethena’s ecosystem and who have been involved in the project for an extended period. Various jurisdictions including the United States of America impose restrictions on participation.
Some aspects of the Ethena online application including the dApp user interface are banned for users in restricted jurisdictions. This guarantees that they are following the applicable legislation and legal requirements.
USDe functions as Ethena’s cryptocurrency equivalent of the dollar due to its backing by staked ETH and short ETH hedges on exchanges. Within the order books of AMMs and CEX, it serves as the central point for liquidity provision within AMMs and CEX order books.
sUSDe represents staked USDe, a cryptocurrency that derives value from the underlying staked ETH and the funding rate generated from short ETH holdings.
In the context of the staking smart contract, the USD token is a reward-bearing token that reflects the accumulation of value. The primary focus of the first epoch is Curve LP participation, during which users contribute liquidity to a variety of USDe pools accessible on Curve.
Through the frontend of Ethena participants can lock their Curve LP tokens to earn 20 shards every day for every dollar worth of LP tokens that they lock. Users have the opportunity to earn ten more shards for each USDe that they deposit.