Ethena Unveils USDe Stablecoin, Digitally Native Savings Bond

Ethena intends to create a stablecoin referred to as USDe, supported by derivatives.

The stablecoin will maintain its peg to the U.S. dollar by using user collateral to hedge price exposure via Ethereum shorting using perpetual swaps.

This mechanism, known as “delta-neutral” stability, ensures that any gains or losses from Ethereum and perpetual swaps are offset, allowing the stablecoin to maintain a stable $1 peg.

Ethena is developing the first-ever digitally native savings bond built on top of the stablecoin.

The bond token will operate similarly to the United States Treasury but without relying on centralized financial institutions or government entities.

Together, the stablecoin and bond assets will form a highly scalable digital currency and savings platform, providing global users with an alternative to conventional banking systems.

Ethena aims to meet the demand for accessible, permissionless, dollar-denominated savings instruments outside the United States.

Ethena seeks to provide a widely accessible and permissionless internet bond by offering a stablecoin and bond asset that operate independently of conventional financial systems and banking infrastructure.

The project aims to mitigate risks associated with existing fiat-based stablecoins, such as regulatory and custodial risks borne by users.

By severing ties with external banking infrastructure, Ethena’s stablecoin aims to address overcollateralization and capital efficiency issues.

Ethena plans to launch its stablecoin and bond assets in the third quarter of 2023 after securing seed funding.

The team will concentrate on completing the testnet phase, forming partnerships with industry leaders, and conducting audits of smart contracts to ensure the protocol’s security and efficiency.

Investors are optimistic about Ethena’s novel approach to stablecoins, which emphasizes the possibility of stability, decentralization, and capital efficiency.

The partnership with Dragonfly and other industry leaders will assist in bringing Ethena’s vision to life and developing a stablecoin with widespread user appeal.

The ambitious project of Ethena aims to revolutionize the world of stablecoins and provide an investor-friendly global savings instrument.

Ethena seeks to create a new financial infrastructure that is transparent, secure, and independent of traditional banking systems by leveraging the power of Ethereum and derivatives.