The community behind a synthetic dollar protocol on Ethereum (ETH) is proposing to add a main rival to ETH to its reserve assets for its stablecoin.
According to a new proposal from the Ethena Community (ENA), the community is considering adding Solana (SOL) as a reserve asset for the USDe stablecoin pegged to the US dollar.
“This proposal recommends an allocation of USDe support to SOL using substantially the same mechanisms as the Ethena hedging mechanism currently in place with the BTC and ETH perpetual futures contracts.
The proposed allocation would be expanded incrementally in consultation with the Risk Committee, given the shorter trading history of SOL perpetual futures, less liquidity, and less historical funding rate data.
The proposal would also add liquid-staking SOL variants, such as Binance Liquid Staked SOL or Bybit Liquid Staked SOL (bbSOL), to the diversified cache of USDe reserves.
Additionally, the proposal aims to unlock billions in open interest.
“In addition to potentially increasing protocol revenue via SOL funding rates, this will unlock $2-3 billion in additional open interest, allowing Ethena to continue to increase USDe from its current supply of approximately $2.5 billion and to keep pace with any potential increase in market demand. »
ENA is trading at $0.419 at the time of writing, up 18.5% in the last 24 hours.
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