Ethena to Airdrop $1.3 Billion Worth of Tokens

Ethena to Airdrop $1.3 Billion Worth of Tokens

Ethena to Airdrop $1.3 Billion Worth of Tokens

Ethena’s USDe token, valued at $1.3 billion, has surged in value due to high yields and anticipation of the airdrop.

According to a blog post, decentralized finance (DeFi) protocol Ethena, which offers the USDe token worth $1.3 billion, revealed on Wednesday its intention to airdrop tokens to users on April 2 to introduce its governance token.

A 5% airdrop of 750 million ENA tokens, or 5% of the total supply, is scheduled by the protocol.

The “shards” campaign, which enables users to qualify for the token airdrop, will conclude on April 1.

Those who sell, activate, or unstake their entire USDe holdings before this date will be ineligible to receive the airdrop.

The blog post states that beginning the following day, users can claim tokens, and ENA will be listed on centralized exchanges.

Ethena will launch a campaign following the airdrop that features new incentives for the subsequent airdrop phase.

Ethena’s Innovative Stability Mechanisms

By utilizing ether (ETH) liquid staking tokens, such as Lido’s stETH, as backing assets and pairing them with an equivalent value of short ETH perpetual futures positions on derivatives exchanges to maintain a “rough target” of $1 in price, Ethena’s USDe token, also known as the “synthetic dollar,” provides investors with stable returns.

A “cash and carry” transaction, which acquires yield-bearing derivatives funding rates, is another name for this.

According to DefiLlama data, the USDe token of the protocol has recently skyrocketed, increasing from $85 million at the beginning of the year to over $1.3 billion, propelled by its stratospheric yield caused by frothy cryptocurrency markets and in anticipation of the airdrop.

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