Ethena (ENA) developer firm Ethena Labs has introduced the addition of Bitcoin because the collateral asset for its “artificial greenback” USDe.
The venture, which just lately distributed airdrops to its customers, a few of them by way of Binance Launchpool, claimed that this Bitcoin transfer would allow its USDe token pegged to the greenback to scale greater than 2.5 instances.
“As Ethena approaches $10 billion, this gives extra sturdy help and finally a safer product for customers,” the official assertion stated. The present USDe provide is estimated to be value roughly $2 billion.
Ethena Labs additionally stated Bitcoin has a superior liquidity and length profile for delta hedging in comparison with liquid staking tokens. This was a key issue within the resolution so as to add Bitcoin as a supporting asset, in accordance with the assertion.
In accordance with info on Ethena Labs’ web site, USDe was to this point solely backed by staked Ethereum (ETH). Nevertheless, token holders are displaying extra curiosity in Bitcoin buying and selling.
Final yr, Bitcoin open curiosity elevated by 150% to $25 billion, in accordance with Ethena, which led to USDe greater than doubling its scaling capability. Compared, Ethereum’s open curiosity solely elevated by 100% to $10 billion throughout the identical interval.
*This isn’t funding recommendation.
