In response to an Aug. 7 assertion, Ethena Labs revealed its intentions to increase the “artificial greenback” USDe to the Solana blockchain and add the SOL token as a backing asset for a stablecoin.
The combination between USDe and Solana was made doable by way of LayerZero’s Omnichannel Fungible Token (OFT).
Ethena Labs famous that over 90% of Solana's $3.5 billion stablecoin provide just isn’t delivering rewards. USDe goals to fill that hole and appeal to new customers by permitting them to transact on Solana whereas incomes rewards by way of a staking model of sUSDe.
Moreover, the corporate plans to suggest SOL and its liquidity staking model, jitoSOL, as collateral property for USDe by way of a governance choice subsequent week, a transfer that might unlock a further $2-3 billion in open balances throughout main exchanges, additional enhancing USDe's scalability.
Moreover, Solana USDe holders can earn Ethena sats by staking USDe in DeFi protocols similar to Kamino, Orca, and Drift.
Market analysts famous that these strikes might enhance adoption of USDe amongst retail cryptocurrency customers. The Solana blockchain's quick transaction speeds and low prices have made it a outstanding stablecoin community, attracting consideration from main cost corporations similar to PayPal.
USDe has gained momentum quickly following the announcement, with Solana’s complete provide standing at $523,936 on the time of writing, in line with SolScan knowledge. nft-cryptocurrency In response to the information, USDe has a circulating provide of $3.1 billion, making it the fourth-largest stablecoin within the cryptocurrency market.
$100 million redemption
In the meantime, Ethena Labs' enlargement is available in the identical week that USDe skilled its largest ever redemption of almost $100 million on Aug. 5 amid rising promoting stress throughout the cryptocurrency market.
Connor Ryder, head of analysis at Ethena Labs, confirmed that USDe managed these redemptions successfully, sustaining the peg inside about 30 foundation factors regardless of market fluctuations.
USDe differs from conventional stablecoins in that it doesn’t depend on direct fiat or tangible asset backing, as a substitute utilizing by-product hedges with collateral positions in ETH and Bitcoin, and an arbitrage system of issuance and redemption to keep up its peg to the US Greenback.
