Pink-hot decentralized finance (DeFi) undertaking Ethena stated 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 gentle $1 value and holds 90% of its reserves in BUIDL, the tokenized cash market fund issued by asset administration behemoth BlackRock and tokenization agency Securitize.
“In mild of the quickly accelerating demand for various stablecoin choices, we noticed a transparent alternative to supply a brand new product that provides customers a wholly completely different danger profile from USDe with out them having to depart our trusted ecosystem,” Ethena founder Man Younger stated in a press release.
Ethena is among the fastest-growing DeFi platforms this yr, attracting practically $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 gentle $1 value, generates yield to buyers by shorting bitcoin (BTC), ether (ETH) and solana (SOL) perpetual swaps and farming the funding charges. This funding technique affords lofty yields – presently 27% annualized – when crypto markets are in bull mode, however can shortly flip unprofitable when issues flip bearish with persistently destructive funding charges.
The brand new providing will enable Ethena shut the underlying derivatives positions behind USDe and divert the backing property to USDtb in periods of destructive funding charges and mitigating dangers, the Ethena group 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 Sport-Changer for Collateral in Crypto Markets
Ethena enlisted Copper, Zodia Custody, Komainu, and Coinbase Institutional as custodians for USDtb, in keeping with a press launch. Liquidity suppliers for the token embody Leap, 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 take a position as much as $1 billion funds in tokenized real-world asset (RWA) merchandise.
The protocol’s governance token lately garnered the eye of President-elect Donald Trump DeFi undertaking 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 a number of the advance on Monday.