Ethena Labs Expands USDe’s Collateral to Include Bitcoin (BTC)
Ethena Labs, the workforce behind the artificial dollar-pegged product USDe, has introduced the addition of Bitcoin (BTC) as collateral.
Ethena believes that together with Bitcoin as collateral will improve liquidity and supply a safer and extra strong product for USDe token holders. The workforce said that BTC by-product markets are experiencing quicker progress in comparison with ETH, providing higher scalability and liquidity for delta hedging.
Earlier than the addition of Bitcoin, USDe was backed by Ethereum (ETH), Tether (USDT), and Ether-based liquid staking tokens. Ethena sources the vast majority of its collateral from centralized exchanges like Binance, ByBit, and OKX. Whereas Bitcoin doesn’t supply a local staking yield like staked Ether, Ethena famous that staking yields of 3-4% are much less vital throughout bull markets when funding charges can exceed 30%.
USDe at present ranks fifth in market capitalization amongst stablecoins, trailing behind USDT, USD Coin (USDC), Dai (DAI), and First Digital USD (FDUSD). Nevertheless, some locally, like famend DeFi developer Andre Cronje, raised issues in regards to the sustainability of the Ethena Labs mannequin.
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