👌👌Bitcoin and Ethereum-Backed Altcoin Offered Solana, Price Jump! 👌👌

While the leading cryptocurrency Bitcoin started the new week with an increase, movement is also observed in altcoins.

While many altcoins gained value during this process, some positively diverged from the market. One of these altcoins was Ethena (ENA).

Behind ENA's rise lies the Solana (SOL) proposal. The Ethena community suggested that Solana and its staked versions (BNSOL and bbSOL) be added as reserve assets to support USDe. With this proposal, the community aims to diversify the asset pool supporting USDe and increase its success and utility in the decentralized finance (DeFi) field.

If the proposal is accepted, Solana will join Bitcoin (BTC) and Ethereum (ETH) among Ethena's collateral assets.

“This proposal proposes to redirect USDe’s support to SOL via the same hedging mechanism that Ethena implements in Bitcoin and Ethereum futures. The proposed allocation will be implemented slowly in consultation with the Risk Committee, considering SOL’s shorter trading history, less liquidity, and historical funding rate data.”

Following this proposal, Ethena gained 17.7%, taking its price to $0.4.

What is USDe?

USDe is different from traditional stablecoins such as Tether (USDT) or Circle (USDC) in that it is a synthetic stablecoin and is not backed by fiat assets at a 1:1 ratio. USDe maintains its $1 peg by collateralizing stablecoins and taking large open interest futures positions to lock in value, utilizing a hedged cash and carry trade backed by a reserve fund to manage risk in volatile market conditions.

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