Key Notes
- Ethena’s USDe is now a collateral on the Deribit exchange.
- The collateral status of the token is subject to regulatory approval.
- Ethena’s role in the industry is diverse with a recent BlackRock partnership.
Ethena Labs has announced the upcoming integration of its USDe
USDe
$1.00
24h volatility:
0.1%
Market cap:
$3.82 B
Vol. 24h:
$129.28 M
as rewarding margin collateral on the Deribit derivatives exchange. As a result of this potential integration, Deribit users can earn rewards for holding USDe. They can still use the token as derivative margin collateral in cross-collateral pools.
According to the derivatives exchange, this move aims to include USDe in its cross-collateral pool by early January. This timeline is highly dependent on regulatory approval.
Utilizing USDe and Its Benefits
All users can earn rewards just for holding USDe and using it as derivatives margin collateral in a cross-collateral pool. They could use USDe as a part of single or multi-exchange derivatives strategies while earning rewards by holding the synthetic dollar. Top exchanges like Bybit, Bitget, and Gate currently have USDe as margin collateral.
“This integration of USDe within the cross collateral pool unlocks completely new structured product use cases not previously possible on CEXs with vanilla stablecoin collateral,” Ethena Labs founder Guy Young said.
In the long run, Young expects this integration to become one of the most important venues for USDe use cases. Young’s projection is based on Deribit’s huge market share of 85% within the options space. In addition, he looks forward to the USDe integration on the derivatives exchange, which will attract both TradFi and crypto-native trading firms.
The integration news has triggered some price rally for the Ethena (ENA) token. This is the governance token in the Ethena ecosystem. According to CoinMarketCap, ENA’s price was trading at $0.6019, corresponding to a 3.73% increase in the last 24 hours. Its trading volume has equally spiked by 45.59% and now rests on $428.45 million.
Over the last 30 days, ENA has recorded approximately 70%. Ethena Labs proposed the integration of Solana
SOL
$255.4
24h volatility:
0.0%
Market cap:
$121.26 B
Vol. 24h:
$8.89 B
as collateral for USDe last month.
Ethena Labs Comes Up with UStb Stablecoin
Apart from USDe, Ethena has been working on a new stablecoin project, UStb (USTB). This token collaborates with asset management firm BlackRock Inc (NYSE: BLK) and Securitize.
The protocol announced the new project two months ago, citing that UStb will function like other traditional stablecoins. The plan is to invest its reserves into BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), tokenized on Ethereum.
Ethena Labs described the UStb stablecoin as a “wholly independent product,” that is independent of its already existing USDe. Therefore, they both have a completely different risk profile. On the other hand, launching the new UStb stablecoin can help USDe in difficult market conditions.
The Ethena Labs team explained:
“If deemed necessary and appropriate by Ethena’s governance, during periods of negative funding rates Ethena will be able to close the hedging positions underlying USDe and re-allocate its backing assets to UStb to further ameliorate related risks.”
Ethena’s plan is for UStb to become an alternative to USDe for margin collateral on its partnered centralized exchanges, including Bybit and Bitget.
next
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
