Synthetic Buck Protocol Ethena Expands to Solana, Entails SOL as Backing Asset
Ethena Labs, builders of the factitious greenback protocol Ethena, announced the rollout of Ethena to Solana on Wednesday, an effort to create better the scalability and sturdiness of Ethena’s flagship token: USDe.
In step with a assertion shared with Unchained, customers on Solana can transact in USDe, a cryptocurrency aimed at staying pegged to $1, and stake USDe to accrue a yield. At presstime, Ethena provided an annual percentage yield of 12.3% to pockets addresses that stake their USDe by incomes funding rates from commence rapid spinoff positions as well to receiving rewards from securing the Ethereum blockchain.
Ethena’s arrival on Solana also entails Ethena Labs using SOL to support its USDe. SOL as a backing asset to USDE joins the likes of a host of cryptocurrencies, particularly ETH, BTC, stablecoin holdings, and ETH-essentially based liquid staking tokens equivalent to Lido’s stETH.
Data from DefiLlama displays Ethena is the eighth-ideal DeFi protocol by total worth locked, within the support of decentralized replace Uniswap and restaking mission EtherFi.
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“As nicely as to rising the energy and security of USDe’s backing, this will liberate $2 billion to $3 billion in extra commence passion within the SOL futures market – allowing USDe to continue scaling from its most modern provide of roughly $3.2 billion and preserve wobble with rising market seek info from of,” the assertion talked about.
The announcement comes roughly four months after Ethena Labs added BTC, the ideal cryptocurrency by market cap, as a backing asset, which helped boost the provision of USDe by about $1.2 billion.
Whereas ENA, the governance token for Ethena, has elevated 1.8% within the previous hour to interchange at 28 cents, the token has slumped 31.5% within the previous seven days, giving it a market cap of $506.2 million, per CoinGecko.
Source credit : unchainedcrypto.com