Ethena USDe (USDe)
Ethena is a synthetic dollar protocol on Ethereum offering a crypto-native, censorship-resistant stablecoin and a dollar-denominated savings instrument.
Overview
Ethena is a synthetic dollar protocol built on Ethereum that offers a crypto-native alternative to traditional fiat stablecoins. Its core product, USDe, is a synthetic dollar designed to maintain a stable value through delta-hedging strategies involving staked Ethereum collateral and derivatives such as perpetual and futures contracts. Unlike fiat-backed stablecoins, USDe is fully backed on-chain by a combination of crypto assets and short futures positions, enabling censorship resistance and composability across decentralized and centralized finance (DeFi and CeFi) ecosystems.
Ethena also introduces the 'Internet Bond'—a dollar-denominated savings instrument called sUSDe that combines yield from staked Ethereum with returns derived from derivatives markets. This bond aims to provide a scalable, globally accessible savings vehicle that operates independently of traditional banking infrastructure. The protocol’s peg stability is maintained through dynamic delta hedging and the inclusion of liquid stablecoins like USDC and USDT, which enhance hedging efficiency and provide downside protection during adverse market conditions.
Users can acquire USDe permissionlessly via external automated market maker (AMM) pools or mint and redeem USDe directly by transferring reserve assets, subject to KYC/KYB checks for approved market makers. Staking USDe to earn protocol revenue rewards is available in permitted jurisdictions. Ethena’s architecture emphasizes transparency with on-chain backing and real-time dashboards, and it supports composability throughout DeFi. Developers and financial institutions interested in integrating a crypto-native stable dollar or a novel savings instrument can leverage Ethena’s open protocol and extensive documentation to get started.
The Problem
Traditional fiat stablecoins rely on centralized banking infrastructure and custodians, which introduces censorship risks and limits composability in decentralized finance. Existing stablecoins also face challenges maintaining peg stability during volatile market conditions without transparent on-chain backing.
The Solution
Key Features
Permissionless acquisition
Users can acquire USDe via external AMM pools without intermediaries.
Direct minting and redemption
Approved market makers can mint and redeem USDe by transferring reserve assets, subject to KYC/KYB.
Staking for protocol revenue
USDe holders in permitted jurisdictions can stake tokens to earn rewards from protocol revenue.
Key Strengths
How Developers Use Ethena USDe (USDe)
Stablecoin for DeFi composability
Developers integrate USDe as a censorship-resistant stablecoin in DeFi protocols to enable stable value transfers and lending.
Dollar-denominated savings
Users in permitted jurisdictions stake sUSDe to earn yield combining Ethereum staking rewards and derivatives market returns.
Market making with synthetic collateral
Approved market makers mint and redeem USDe directly to provide liquidity and arbitrage opportunities in crypto markets.
Works Well WithEthereumBNB Smart ChainOptimismArbitrum Nova
Kava
Metis
Mantle
Linea
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Pricing
Standard | |
|---|---|
| Price (Monthly) | Free |
| Price (Annual) | Free |
| Messaging | N/A |
| Support | Community support via Discord and Telegram |
| Analytics |
Resources
Ethena provides comprehensive documentation covering protocol design, risk disclosures, governance, and user guides for minting, staking, and redeeming USDe and sUSDe.