Decentralized finance (DeFi) project Ethena announced Monday that it is rolling out its new stablecoin that aims to help stabilize the protocol’s flagship token, USDe, when crypto markets turn bearish.
The USDtb token aims to maintain a stable price of $1 and holds 90% of its reserves in BUIDL, the tokenized money market fund issued by asset management giant BlackRock and tokenization company Securitize.
“In light of the rapidly accelerating demand for different stablecoin options, we saw a clear opportunity to deliver a new product that offers users an entirely different risk profile than USDe without them having to to leave our trusted ecosystem,” said Ethena founder Guy Young. statement.
Ethena is one of the fastest-growing DeFi platforms this year, attracting nearly $6 billion in user funds since its public launch in early 2024. The protocol’s flagship token, USDe, marketed as a “synthetic dollar » with a stable price of $1, generates a return of $1. investors by shorting Bitcoin (BTC), Ether (ETH), and Solana (SOL) perpetual swaps and increasing funding rates. This investment strategy offers high returns – currently 27% annualized – when crypto markets are in bull mode, but can quickly become unprofitable when things turn downward with persistently negative funding rates.
The new offering will allow Ethena to close underlying derivative positions behind USDe and divert backing assets to USDtb during periods of negative funding rates and de-risking, the team explained. ‘Ethena.
The protocol also aspires to have USDtb accepted as collateral in the future for margin trading on centralized exchanges.
Read more: Tokenized Treasures: A Game Changer for Collateralization in Crypto Markets
Ethena has tapped Copper, Zodia Custody, Komainu and Coinbase Institutional as custodians for USDtb, according to a press release. Liquidity providers for the token include Jump, Cumberland, Amber Group, GSR Markets and SCB Limited.
Ethena also applied with new stablecoin USDtb for the so-called Tokenization Gran Prix program from Sky, formerly MakerDAO, which aims to invest up to $1 billion of funds in tokenized real-world asset (RWA) products.
The protocol’s governance token recently attracted the attention of President-elect Donald Trump’s DeFi project, World Liberty Financial, which purchased some $500,000 worth of tokens on Saturday, according to blockchain data. The ENA then rebounded 25% over the weekend before reducing some of its progress on Monday.
