Stablecoin yields are always variable. When funding rates rise, yields rise with them; when funding rates turn negative, the same capital starts costing you money. Until now, there hasn’t been a tool for locking in a known cost for your cash several months ahead.
Pendle announced that the Ethena discounted note market is now live, splitting Ethena’s yield-bearing assets into fixed and floating components. Buy notes at a discount and redeem them at face value at maturity, locking in a fixed yield of up to 6%. Capital seeking certainty can take the fixed side, while capital willing to bear volatility can take the floating side.
The 6% figure is worth a closer look. It’s a public market quote on future Ethena funding rates and credit risk, posted on-chain for anyone to see. The more people lock in, the lower the fixed rate gets. Conversely, when this figure rises, it means less capital is willing to lock up funds until a later date.
Until now, when tracking the stablecoin ecosystem, all you could do was watch issuance and daily funding-rate fluctuations—both of which are noisy. With a fixed side, there’s now another price to track continuously: how the fixed rate for a given maturity changes. It’s steadier than the daily funding rate and more closely reflects real demand than issuance does.
$ENA #Ethena #Stablecoin
Pendle announced that the Ethena discounted note market is now live, splitting Ethena’s yield-bearing assets into fixed and floating components. Buy notes at a discount and redeem them at face value at maturity, locking in a fixed yield of up to 6%. Capital seeking certainty can take the fixed side, while capital willing to bear volatility can take the floating side.
The 6% figure is worth a closer look. It’s a public market quote on future Ethena funding rates and credit risk, posted on-chain for anyone to see. The more people lock in, the lower the fixed rate gets. Conversely, when this figure rises, it means less capital is willing to lock up funds until a later date.
Until now, when tracking the stablecoin ecosystem, all you could do was watch issuance and daily funding-rate fluctuations—both of which are noisy. With a fixed side, there’s now another price to track continuously: how the fixed rate for a given maturity changes. It’s steadier than the daily funding rate and more closely reflects real demand than issuance does.
$ENA #Ethena #Stablecoin
