Ethena USDe(USDE)
Ethena USDe Charts
About Ethena USDe?
The live price of Ethena USDe (USDE) today is 1.0015 USD, and with the current circulating supply of Ethena USDe at 3,232,681,858.19 USDE, its market capitalization stands at 3,237,602,219 USD. In the last 24 hours USDE price has moved 0.0012 USD or 0.00% while 3,792,764 USD worth of USDE has been traded on various exchanges. The current valuation of USDE puts it at #40 in cryptocurrency rankings based on market capitalization.
Learn more about the Ethena USDe blockchain network and how it works or follow the price of its native cryptocurrency USDE and the broader market with our unique COIN360 cryptocurrency heatmap.
What Is Ethena?
Built on Ethereum, Ethena USDe is a synthetic dollar protocol that delivers a censorship-resistant, scalable, and stable digital money solution that goes beyond the conventional infrastructural boundaries of traditional banking. It offers a crypto-native money solution through its own stablecoin and synthetic dollar, the USDe.
Background and Development
Garnering support from backing asset derivatives within liquid and deep centralized venues, USDe was developed to cater to the “stablecoin trilemma,” which is an issue faced by several predecessors of stablecoin design.
The concept touches on how difficult it is for stablecoins to reach stability, decentralization, and capital scalability or efficiency simultaneously. In most cases, improvements done on one aspect would end up compromising another area, making it generally difficult to find a stablecoin that excels in all three areas USDe addresses this issue in several ways.
How Ethena Works
Users may mint USDe by depositing Ethereum (ETH) or other staked derivatives as a collateral. The synthetic dollars may then be staked for users to reap yields. As for how Ethena provides yields, the protocol has made use of various methods that involve cash-and-carry trade.
Generally, the Ethena protocol has two main revenue sources from the assets that back it. Its revenue is mainly derived from the following:
Staked assets of Ethereum that receive rewards
Funding and basis spread from the activities of delta hedging.
Because of these, USDe is considered an attractive investment that accumulates value as time passes. Ethena has also announced the expansion to the Solana (SOL) network, with USDe launching on Solana, and SOL in discussions of being included in USDe's collateral basket.
USDe: A Synthetic Dollar
Unlike its predecessors, Ethena marketed USDe as a "synthetic dollar.” Also referred to as an “Internet Bond,” the synthetic dollar acts as a savings instrument that is dollar-denominated and that offers DeFi benefits.
USDe is pegged at 1:1 with the US dollar, making it stand out among other traditional stablecoins. It was designed with the goal of maintaining stability amidst the general volatility of the crypto market. This stability is reached through a mix of a mint-and-redeem mechanism for arbitrage and delta hedging.
All of these ensure that USDe will be a reliable exchange medium and value store within the crypto space.
USDe Stability
Delta hedging is what mainly ensures USDe's stability. Such a strategy involves offsetting positions within the market for derivatives that have the same size as the Ethereum collateral. It ensures that the value of USDe stays stable and that price movements get counterbalanced.
This is meant to protect the synthetic dollar against the volatility of the crypto market. Resultantly, USDe may retain its 1:1 peg with the US dollar. Hedging position adjustments are programmed and automated to have real-time reactions to changes in market conditions.
Should You Invest in USDe?
| Reasons For Investing in USDe | Reasons Against Investing in USDe |
|---|---|
| USDe may potentially address the stablecoin trilemma. The synthetic dollar could potentially resolve the issue through its incorporation of a delta-neutral method to ensure its stability, usage of a delta-hedging mechanism, and backing with collateral that remains with institutional-grade providers. | USDe comes with various risks. Ethena Lab itself admits the different risks of USDe. These risks and vulnerabilities include those of market, external platform, liquidation, smart contract, custodial operation, funding, and exchange counterparty. For instance, USDe faces custodial risk due to how the protocol depends on “Off-Exchange Settlement” provider solutions for holding its backing assets. This makes the protocol's operational ability quite dependent on other services. |
| USDe offers high yield potential. Users were promised an annual percentage yield (APY) equivalent to 27.6% upon the synthetic dollar's launch. According to Ethena, the protocol is capable of offering such yields due to staking ETH rewards as well as funding and basis spreads from delta hedging. | USDe has technical challenges. Ethena's technology, especially its delta hedging for USDe stabilization, is inherently complicated. There are intrinsic risks, such as vulnerabilities within smart contracts, that come with these mechanisms. The protocol addresses such risks by having third-party smart contract audits as well as extensive testing. |
| USDe is less volatile compared to other cryptocurrencies. As a stablecoin, USDe has a higher degree of inherent stability. Because of this, it can be used for regular investments and transactions. Its delta-hedging mechanism may also aid in minimizing price fluctuations. |
How is USDe Different Compared to Other Stablecoins?
Rather than being backed by fiat currency, the synthetic dollar is backed by collateral that comes in the form of Bitcoin (BTC) and Ethereum (ETH). Other traditional stablecoins, such as USDT, typically depend on bank reserves as they are pegged to fiat currencies. The value of USDe is stabilized through delta hedging.
With its “Internet Bond,” USDe also uniquely offers an intrinsic yield mechanism. This provides yield over holdings that are directly accrued on USDe. The synthetic dollar also offers remarkable transparency, as there is on-chain evidence of every position and transaction.
Is USDe Fully Decentralized?
Yes. USDe functions on a decentralized platform, which makes sure that its process of issuance and redemption is not controlled by a sole entity.
Can You Buy USDe on Major Exchanges?
Yes. USDe is listed on major exchanges, such as centralized exchanges (CEXs) KuCoin and Bybit. The synthetic dollar has also launched on the Solana blockchain, arriving on decentralized exchanges (DEXs) Curve and Orca.
| Ethena USDe Price | 1.0015 USD |
| Market Rank | #40 |
| Market Cap | 3,237,602,219 USD |
| 24h Volume | 5,936,089 USD |
| Circulating Supply | 3,232,681,858.19 USDE |
| Max Supply | No data |
| Yesterday's Market Cap | 3,204,110,592 USD |
| Yesterday's Open / Close | 1.0025 USD / 1.0037 USD |
| Yesterday's High / Low | 1.004 USD / 1.002 USD |
| Yesterday's Change | 0.00% ( 0.0012 USD ) |
| Yesterday's Volume | 3,792,764.25 USD |
