Bittime - Ethena Labs, developer of USDe, a stablecoin whose value is pegged to the US dollar, announced a strategic move to increase the scalability of USDe. They added Bitcoin (BTC) as a supporting asset.
USDe has grown rapidly since its launch earlier this year. The free token giveaway program (airdrop) was successful in attracting users, and the total value of assets locked (TVL) on USDe is now approaching $2 billion.
This growth impacted Ethena's short futures positions used to protect their Ether assets. The size of this position has now reached 20% of the total open interest in Ether.
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To overcome this and increase USDe's scalability, Ethena plans to utilize the Bitcoin (BTC) derivatives market which has large liquidity and higher growth potential. Ethena estimates this step could increase USDe's scalability by up to 250%.
ENA Token Launch
Ethena recently launched its ENA token which is now trading at around $1 per token, with a total market cap of $1.5 billion.
Ethena explained that although Bitcoin does not offer staking yields (income from storing crypto assets) like Ethereum (ETH), it has advantages in terms of liquidity and duration.
Also read: Ethena (ENA): Emerging Cryptocurrency
Additionally, in bull market conditions where funding costs exceed 30%, staking returns become less significant.
By adding Bitcoin as a supporting asset, Ethena hopes to improve the overall scalability and stability of USDe. This Bitcoin integration will begin to be reflected in the Ethena dashboard starting tomorrow.
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Get to know USDe, Ethena's Stablecoin
USDe is a stablecoin developed by Ethena Labs on the Ethereum network. USDe is designed as a crypto-native digital currency solution as an alternative to US dollar cash, without dependence on traditional banking infrastructure.
USDe also aims to provide globally accessible dollar-based savings instruments, which they call “Internet Bonds”.
Also read: What is Ethena (ENA)? Synthetic Dollar (USDe) DeFi Protocol
USDe is at the forefront of delivering crypto-native digital currency solutions that are censorship-resistant, scalable and stable. USDe's stability is achieved through a delta-hedging mechanism applied to Ethereum deposited as collateral.
USDe is fully supported transparently on the blockchain and can be used freely on various DeFi (Decentralized Finance) platforms.
The stability of the value of USDe is maintained through the use of delta hedging derivative positions against the collateral held by the protocol, along with mint and redeem arbitrage mechanisms.
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Currently, the price of USDe is IDR 15,938.55 per token with a 24-hour trading volume of IDR 3,949,240,370,716. USDe's market capitalization reached IDR 31,825,174,014,066 and was ranked #207 on CoinMarketCap.
The total supply of USDe currently in circulation is 1,996,741,708 tokens, while the maximum supply is not yet known.
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You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn Complete Guide How to Buy Crypto on Bittime.
Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also read:
Ethereum Based Altcoin: Ethena (ENA) on Binance
Ethena vs MEW: Which Crypto Investment is Most Suitable?
Ethena Airdrop Distribution: Providing Benefits to Ethana Shard Holders
Mantle Launches Sharding with Ethena: Towards Higher Ethereum Scalability
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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