The post Ethena Labs To Launch Synthetic USDe Stablecoin on Dec. 16 appeared on BitcoinEthereumNews.com.

Ethena Labs announced the launch of its synthetic USDe stablecoin on Dec. 16, 2024, as the token’s market cap reached $5.73 billion, an all-time high. In a post on X, Ethena Labs, built on the Ethereum blockchain, announced a possible launch for its stablecoin USDe which is pegged with the U.S. dollar. It is mainly built as a yield-generating asset rather than an intermediary for a transaction, similar to Tether (USDT) or USD Coin (USDC). Ethena Labs announcement of USDe stablecoin on X. In contrast to the traditional fiat-reserve-backed stablecoins, USDe derives its yield based on the staking rewards of Ethereum and keeps that reward away from the short funding rate for ETH. By doing so, it provides the holder with an attractive annual percentage yield of up to 29%. This double-layered yield model makes USDe a high-reward financial instrument in the decentralized finance space. Users have rapidly flocked to USDe, making it the third-largest USD-pegged stablecoin, overtaking DAI’s $4.7 billion, but is behind USDT and USDC, which have a market cap of $135 billion and $40 billion, respectively. According to CoinMarketCap, USDe’s trading volume increased by 24.27% in the past 24 hours to reach $171.09 million, indicating high demand for yield-bearing assets. How sustainable is the USDe stablecoin model? Ethena’s USDe has been compared to Terra-Luna, whose value also collapsed in 2022 because of its unsustainable growth model, by critics. Terra’s collapse was attributed to its struggles to maintain its peg in a bearish market, and experts fear USDe could suffer the same fate. USDe employs a delta-neutral trading strategy, balancing BTC and ETH long and short positions to maintain stability and yield. Ethena hedges the long stETH positions on centralized exchanges. In case a CEX goes down, the hedge may sit there;  Ethena’s positions open to unrealized profits…

---

Filed under: News - @ December 13, 2024 5:22 am