Ethena, a startup based in Portugal, has embarked on an innovative journey within the realm of algorithmic stablecoins, spearheading the development of a new Ethereum-based stablecoin named USDe. The project, which has attracted significant attention and funding, raised $6 million in a seed funding round led by Dragonfly, with notable participation from Arthur Hayes and several crypto derivatives exchanges like Deribit, Bybit, OKX, Gemini, and Huobi. This initiative marks a significant leap forward in Ethena's quest to redefine the landscape of digital currencies and savings .
The Ethena Protocol and its USDe synthetic dollar aim to revolutionize the DeFi space by leveraging Ethereum to create a yield-bearing synthetic dollar. Distinct from traditional stablecoins, USDe positions itself as a synthetic dollar, promoting scalability, stability, and resilience against traditional finance (TradFi) censorship. Ethena's approach is grounded in a blend of innovative technology and financial instruments, including the Internet Bond, which aims to democratize investment opportunities and savings by yielding returns from both the derivatives market and staked Ethereum.
Ethena's stablecoin project distinguishes itself by learning from the pitfalls of previous projects like Terra and devising a robust method to maintain USDe's peg to the US dollar. The strategy involves using user-provided collateral and hedging price exposure through shorting Ethereum perpetual swaps, ensuring a balance between gains and losses from both assets. In addition to the stablecoin, Ethena is also developing a digitally native internet savings bond denominated in USD, which generates yield by combining staked ETH and swap margins, thereby offering investors an opportunity to earn passive income .
Explore the tokenomics of Ethena(ENA) and review the project details below.
What is the allocation & supply schedule for Ethena(ENA)?
The total supply of ENA is 15 billion and the initial circulating supply is 1.425 billion.
The specific distribution and unlocking ratios are as follows:
Core Contributors:This portion of the ENA allocation (30%) represents the distribution to the Ethena Labs team and advisors who have worked on the protocol to bring USDe to market. All core contributors are locked on a 1 year 25% cliff, with 3 year linear monthly vesting thereafter. No core contributor tokens are unlocked prior to the 1yr cliff.
Investors:The investor allocation represents token rights obtained by investors backing the Ethena protocol’s development, to bootstrap both the protocol and the Reserve Fund to support Ethena’s launch. All investors are locked on a 1 year 25% cliff, with 3 year linear monthly vesting thereafter. No investor tokens are unlocked prior to the 1yr cliff.
Foundation:The Foundation allocation will be used to further initiatives that serve to widen the reach of USDe, reducing crypto’s reliance on traditional banking rails and fiat-backed centralized stablecoins. This ENA will be used to fund further development, risk assessments, audits and much more.
Ecosystem Development and Airdrops:30% of ENA is allocated to developing the Ethena ecosystem. The first 5% represents the portion of ENA airdropped to Ethena users as part of the first season of the Shard Campaign. The remainder of the allocation will be used for various Ethena initiatives, including the upcoming second season of the incentive campaign, as well as various cross chain initiatives, exchange partnerships and much more, which will be held by a DAO controlled multisig.
Ethena, a startup based in Portugal, has embarked on an innovative journey within the realm of algorithmic stablecoins, spearheading the development of a new Ethereum-based stablecoin named USDe. The project, which has attracted significant attention and funding, raised $6 million in a seed funding round led by Dragonfly, with notable participation from Arthur Hayes and several crypto derivatives exchanges like Deribit, Bybit, OKX, Gemini, and Huobi. This initiative marks a significant leap forward in Ethena's quest to redefine the landscape of digital currencies and savings .
The Ethena Protocol and its USDe synthetic dollar aim to revolutionize the DeFi space by leveraging Ethereum to create a yield-bearing synthetic dollar. Distinct from traditional stablecoins, USDe positions itself as a synthetic dollar, promoting scalability, stability, and resilience against traditional finance (TradFi) censorship. Ethena's approach is grounded in a blend of innovative technology and financial instruments, including the Internet Bond, which aims to democratize investment opportunities and savings by yielding returns from both the derivatives market and staked Ethereum.
Ethena's stablecoin project distinguishes itself by learning from the pitfalls of previous projects like Terra and devising a robust method to maintain USDe's peg to the US dollar. The strategy involves using user-provided collateral and hedging price exposure through shorting Ethereum perpetual swaps, ensuring a balance between gains and losses from both assets. In addition to the stablecoin, Ethena is also developing a digitally native internet savings bond denominated in USD, which generates yield by combining staked ETH and swap margins, thereby offering investors an opportunity to earn passive income .