Crimson-hot decentralized finance (DeFi) mission Ethena mentioned Monday it’s rolling out its new stablecoin that goals to assist stabilize the protocol’s flagship USDe token when crypto markets flip bearish.
The USDtb token goals to maintain a gradual $1 worth and holds 90% of its reserves in BUIDL, the tokenized cash market fund issued by asset administration behemoth BlackRock and tokenization agency Securitize.
“In gentle of the quickly accelerating demand for various stablecoin choices, we noticed a transparent alternative to supply a brand new product that provides customers a completely totally different threat profile from USDe with out them having to go away our trusted ecosystem,” Ethena founder Man Younger mentioned in an announcement.
Ethena is likely one of the fastest-growing DeFi platforms this 12 months, attracting almost $6 billion of consumer funds since its public launch in early 2024. The protocol’s flagship token USDe, marketed as a “artificial greenback” with a gradual $1 worth, generates yield to buyers by shorting bitcoin (BTC), ether (ETH) and solana (SOL) perpetual swaps and farming the funding charges. This funding technique gives lofty yields – at present 27% annualized – when crypto markets are in bull mode, however can shortly flip unprofitable when issues flip bearish with persistently unfavourable funding charges.
The brand new providing will permit Ethena shut the underlying derivatives positions behind USDe and divert the backing belongings to USDtb during times of unfavourable funding charges and mitigating dangers, the Ethena staff defined.
The protocol additionally aspires to get USDtb accepted as collateral sooner or later for margin buying and selling on centralized exchanges.
Learn extra: Tokenized Treasuries: A Recreation-Changer for Collateral in Crypto Markets
Ethena enlisted Copper, Zodia Custody, Komainu, and Coinbase Institutional as custodians for USDtb, in response to a press launch. Liquidity suppliers for the token embrace Soar, Cumberland, Amber Group, GSR Markets and SCB Restricted.
Ethena additionally utilized 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 funds in tokenized real-world asset (RWA) merchandise.
The protocol’s governance token just lately garnered the eye of President-elect Donald Trump DeFi mission World Liberty Monetary, which bought some $500,000 price of tokens on Saturday, blockchain knowledge confirmed. ENA subsequently rallied 25% over the weekend earlier than paring among the advance on Monday.
