Ethena Labs, developer of the synthetic dollar protocol, has added Bitcoin (BTC) to backing its flagship USDe stablecoin.
Presented via social media platform X, Ethena Labs To tell He said using Bitcoin to support USDe is “key to allowing USDe to expand significantly” from its current $2 billion supply.
USDe aims to be a censorship-resistant stablecoin that maintains backing on-chain via delta-hedged staked Ethereum (ETH) collateral, a mechanism called “Internet Bonds.” .
“'Internet Bond' combines the yield earned from staked Ethereum with funds and basis spreads from perpetual and futures markets to create the first on-chain crypto-native 'bond' that can function as a dollar-denominated savings. ” for users in authorized jurisdictions. ”
Ethena Labs notes that compared to Ethereum, Bitcoin has greater liquidity and exchange open interest, making it ideal for backing and scaling USDe.
“In just one year, BTC open interest (OI) on major exchanges (excluding Chicago Mercantile Exchange) increased from $10 billion to $25 billion, and ETH OI increased from $5 billion to $10 billion. did.
The BTC derivatives market is growing at a faster pace than ETH and offers superior scalability and liquidity for delta hedging…
BTC does not have a native staking yield like staked ETH, but in a bull market with funding rates above 30%, a 3-4% staking yield is not that important.
The current environment is ideal for optimizing USDe scalability. ”
Ethena’s BTC support for USDe is now reflected live on the dashboard.
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