$ENA And the market crashed!! !
Investors and partners
Ethena Labs investment rounds are led by DragonFly Capital, Binance Labs, paypal…
Protect against price fluctuations with a balanced Short position
When talking about algorithmic stablecoins, surely you cannot help but remember the collapse of the Terra LUNA network when the UST stablecoin depeg showed high fluctuations in the market. Ethena has improved from the above lesson using LSTs as the main collateral.
LSTs (stETH, rETH, WBETH) are used as collateral to mint USDe. However, LST are highly volatile altcoins, so Ethena needs to open a short position to hedge against price fluctuations for this asset.
If the value of LSTs in the market drops sharply, the profit from the unleveraged short position will offset the decrease in the price of these LSTs, ensuring their value does not change.
Security elements on the USDe chain
Ethena uses a collateral distribution mechanism through a series of diverse on-chain MPC custody contracts. This ensures that collateral deposits do not rely on centralized servers, thereby minimizing counterparty risk.
Additionally, seamless connectivity to major liquidity venues helps manage underlying risk and optimize capital, while users retain full custody of USDe.
Unlock flexible leverage
USDe generates fixed profits for users through staking rewards from LST and funding rate of short positions. Ethena also continues to allow USDe mints based on LSTs to maintain long-term exposure to Ethereum and at the same time create liquidity for USDe.
👉 Safe, Peace of Mind
