Crimson-hot decentralized finance (DeFi) undertaking Ethena mentioned Monday it’s rolling out its new stablecoin, which goals to assist stabilize the protocol’s flagship USDe token when crypto markets flip bearish.
The USDtb token targets a secure worth of $1 and holds 90% of its reserves in BUIDL, the tokenized cash market fund issued by asset administration big BlackRock and tokenization firm Securitize.
“In gentle of the quickly rising demand for numerous stablecoin choices, we noticed a transparent alternative to supply a brand new product that gives customers a really totally different threat profile than USDe with out having to go away our trusted ecosystem,” mentioned Ethena- founder Man Younger ready.
Ethena is among the quickest rising DeFi platforms this 12 months, attracting practically $6 billion in person funds since its public launch in early 2024. The flagship protocol USDe, marketed as a ‘artificial greenback’ with a secure worth of $1, generates returns for buyers by shorting perpetual swaps of bitcoin (BTC), ether (ETH) and solana (SOL) and edit financing charges. This funding technique affords excessive returns – at present 27% annualized – when crypto markets are in bull mode, however can shortly develop into unprofitable if issues flip bearish with persistently unfavorable funding charges.
The brand new providing will allow Ethena to shut the underlying spinoff positions behind USDe and divert the supporting property to USDtb in periods of unfavorable funding charges and threat mitigation, the Ethena group defined.
The protocol additionally goals to have USDtb accepted as collateral for margin buying and selling on centralized exchanges sooner or later.
Learn extra: Tokenized Treasuries: A Recreation-Changer for Collateral in Crypto Markets
Ethena engaged Copper, Zodia Custody, Komainu and Coinbase Institutional as custodians for USDtb, in accordance with a press launch. Liquidity suppliers for the token embody Bounce, Cumberland, Amber Group, GSR Markets and SCB Restricted.
Ethena has additionally filed with the brand new USDtb stablecoin for Sky’s, previously MakerDAO, so-called Tokenization Gran Prix program that goals to speculate as much as $1 billion of funds in tokenized real-world asset (RWA) merchandise.
The protocol’s governance token not too long ago caught the eye of newly elected President Donald Trump DeFi undertaking World Liberty Monetary, which purchased about $500,000 price of tokens on Saturday, blockchain information confirmed. ENA then rose 25% over the weekend earlier than paring again a few of its positive factors on Monday.