Ethena’s protocol is making extra connections within the DeFi house, with the next cap for USDe on Pendle. Ethena is in search of liquidity for its USDe on a number of DeFi protocols. Ethena’s earnings rely on the efficiency of Ethereum (ETH).
Additionally Learn: Ethena’s USDe exhibits buying and selling disparity after staked token trades decrease than $1
Ethena is a yield and DeFi lending protocol that provides as a lot as 27% APY for holding and staking USDe. In return for the staking rewards, holders of sUSDe take the danger of de-pegging from the greenback, in addition to low liquidity. Nonetheless, sUSDe is a device to faucet into the expansion of ETH with out private publicity.
Ethena’s USDe expands to a number of protocols
In a single day, Ethena’s USDe is now increasing into re-staking protocol Pendle, in addition to the largest DeFi lending protocol, Aave. Pendle introduced it’s elevating the cap for USDe deposits as much as $350M. The protocol guarantees annualized returns of 25.7%.
Ethena is partnering with new protocols forward of its Season 2 farming. Holders of USDe will be capable to earn Sats factors and earn part of the Ethena airdrop fund. Sats, or Ethena factors, might be earned each day by way of Mito protocol.
Thursday shock – cap for @ethena_labs sUSDe (Jul 2024) has been lifted to 350M 🌊
🔹 20x Sats/day + sUSDe yield
🔹 25.7% Implied APYGM. pic.twitter.com/9jLFDjskZW
— Pendle (@pendle_fi) June 27, 2024
Ethena is holding a number of campaigns whereas hinting at one other ENA token airdrop. The loyal holders of the Ethena protocol will be capable to present liquidity within the USDe/USDT pair on the Mito decentralized protocol whereas incomes Sats factors.
The expectation of factors and a future airdrop is a part of the loyalty program for holding USDe and never shifting to different protocols. Ethena’s rewards are at the moment among the many highest in DeFi lending and yield protocols.
Ethena can also be rising extra common as a result of relative stability and bullish outlook for Ethereum (ETH). For Ethena, the predominance of lengthy positions on ETH decreases threat and helps it maintain the steadiness of sUSDe and USDe. Since March, Ethena additionally contains Bitcoin (BTC) as further collateral for its protocol.
.@ethena_labs season 2 Airdrop (sats farming) goes to be loud 🤯
contemplating the truth that out of 35% of whole provide allotted for Airdrops solely 5% was distributed throughout season 1 Airdrop (shard farming)
.@MitoFinance is rewarding Stakers of $USDe – $USDT LP with 15x sats… pic.twitter.com/JtEWbitIfM
— Tega 🥷🏴☠️ (@0xtega_) June 28, 2024
Ethena provides USDe to Aave liquidity pairs
Ethena will begin to develop its liquidity by way of Aave, the main lending DeFi protocol. Aave, with its GHO stablecoin, is including potential liquidity for tokens or different protocols.
Ethena’s sUSDe can now be used as collateral on Aave V3, towards any of the obtainable stablecoins within the protocol. Aave V3 will thus provide a brand new mechanism to swap sUSDe for customers that wish to revert to a different token. For long-term holders, liquidity injections can be translated to incomes extra airdrop factors.
📢@ethena_labs $sUSDe is now onboarded to @aave.
The parameters set for it are:
– Max LTV: 72%
– Liquidation threshold: 75%Now you can open a 3.4x leverage place by way of DeFi Saver, and earn larger yield and sats factors, utilizing the $sUSDe as collateral towards any… pic.twitter.com/jD9xdBfdLf
— DeFi Saver (@DeFiSaver) June 28, 2024
The addition of USDe to decentralized buying and selling on Aave occurs simply months after the protocol expressed worries concerning the threat profile of Ethena. The present addition is comparatively cautious, aiming to have restricted publicity. Whereas Ethena has defined its threat profile, there are fears that it could comply with the crash of Luna’s UST, particularly if the stablecoin provide grows too quick.
MakerDAO is the largest supplier of liquidity for Ethena. Maker added $1B in DAI tokens to help USDe.
Additionally Learn: 3 Crypto Airdrops To Watch This Week: Blast, Sealana, Ethena
For now, USDe manufacturing has stopped at $3.6B, whereas Ethena seeks extra partnerships for its level program. USDe has low-liquidity pairs totally on decentralized exchanges however can also be among the many belongings on the Poloniex trade.
In June, USDe additionally joined as an asset on Bitget International. The stablecoin can be used to supply liquidity and function a margin asset for perpetual swaps and futures. The partnership additionally added a brand new pair with USDT, securing an off-ramp for some USDe holders.
ENA nonetheless struggling to get better its earlier value peak
Ethena is a protocol that awards particular factors, however it additionally has a local token, ENA. After the preliminary hype following an airdrop, ENA continued to slip and is now beneath the worth ranges proper after launching.
ENA trades at $0.56, down from a peak of $1.40. ENA confronted value stress from airdrop recipients and remains to be thought-about dangerous.
Moreover, ENA merchants seen large-scale exercise from whales, which can proceed to stress the worth.
ENA remains to be seen as a possible breakout asset, after reaching an area backside. New talks of an airdrop and the unfold of USDe will proceed to attract consideration to Ethena.
Cryptopolitan reporting by Hristina Vasileva
