Ethena Utilizes Bitcoin as Backing Asset for USDe Stability

Friday, 5 April 2024, 07:03

Ethena has recently integrated Bitcoin as a backing asset to enhance the stability of its USDe tokens. The platform has adopted a strategic approach involving a cash-and-carry trade with bitcoin futures to leverage funding rates for generating yield on USDe tokens. This move is aimed at further securing the USDe and minimizing volatility risks associated with stablecoins.
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Ethena Utilizes Bitcoin as Backing Asset for USDe Stability

Ethena Incorporates Bitcoin to Strengthen USDe Stability

Ethena has recently integrated Bitcoin as a backing asset to enhance the stability of its USDe tokens.

Strategic Approach

  • Cash-and-Carry Trade: Ethena plans to short bitcoin futures and utilize funding rates to generate yield on USDe tokens.

This move is aimed at further securing the USDe and minimizing volatility risks associated with stablecoins.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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