About Ethena USDe (USDe)
USDe, created by Ethena Labs, is a dollar-pegged stablecoin launched in February 2014. Unlike traditional stablecoins backed by real-world assets like cash or gold, USDe utilizes a unique mechanism to maintain its peg: a combination of staking ETH (Ethereum) and managing derivatives on the Ethereum blockchain. This approach allows USDe to offer attractive returns to holders, with current Annual Percentage Yields (APY) exceeding 33.5% (as of June 2024).
Built on the Ethereum blockchain, USDe is an ERC-20 token, making it interoperable with various DeFi applications and protocols within the Ethereum ecosystem. Ethena Labs market USDe as a "synthetic dollar" designed for scalability, stability, and resistance to traditional financial censorship. The stability of the USDe peg is maintained through delta hedging derivatives positions against protocol-held collateral and a mint and redeem arbitrage mechanism.
Launched four months ago, the stablecoin surpassed the $3 billion market capitalization mark on June 2, 2024 to become the fourth-largest stablecoin. Ethena's founder, Guy Young, claims USDe achieved this milestone faster than any other USD-denominated crypto asset in history.
Ethena Labs, through USDe, aims to revolutionize the DeFi landscape with its Ethena Finance platform.This web-based interface allows users to transform their ETH holdings into a yield-generating synthetic dollar through USDe tokens.
USDe sits at the core of the Ethena Protocol, powering the entire ecosystem by generating returns for participants. The live price of USDe is available and updated in real time on Binance.
