Purple-hot decentralized finance (DeFi) challenge Ethena mentioned Monday it’s rolling out its new stablecoin that goals to assist stabilize the protocol’s flagship USDe token when crypto markets flip bearish.
The USDtb token goals to maintain a gradual $1 worth and holds 90% of its reserves in BUIDL, the tokenized cash market fund issued by asset administration behemoth BlackRock and tokenization agency Securitize.
“In light of the rapidly accelerating demand for different stablecoin options, we saw a clear opportunity to provide a new product that offers users an entirely different risk profile from USDe without them having to leave our trusted ecosystem,” Ethena founder Guy Young said in a statement.
Ethena is one of the fastest-growing DeFi platforms this year, attracting nearly $6 billion of user funds since its public launch in early 2024. The protocol’s flagship token USDe, marketed as a “artificial greenback” with a steady $1 price, generates yield to investors by shorting bitcoin (BTC), ether (ETH) and solana (SOL) perpetual swaps and farming the funding charges. This funding technique affords lofty yields – presently 27% annualized – when crypto markets are in bull mode, however can quickly turn unprofitable when things turn bearish with persistently negative funding rates.
The new offering will allow Ethena close the underlying derivatives positions behind USDe and divert the backing assets to USDtb during periods of negative funding rates and mitigating risks, the Ethena team explained.
The protocol also aspires to get USDtb accepted as collateral in the future for margin trading on centralized exchanges.
Read more: Tokenized Treasuries: A Game-Changer for Collateral in Crypto Markets
Ethena enlisted Copper, Zodia Custody, Komainu, and Coinbase Institutional as custodians for USDtb, according to a press release. Liquidity providers for the token include Jump, Cumberland, Amber Group, GSR Markets and SCB Limited.
Ethena also applied with the new USDtb stablecoin for Sky’s, formerly MakerDAO, so-called Tokenization Gran Prix program that aims to invest up to $1 billion funds in tokenized real-world asset (RWA) products.
The protocol’s governance token recently garnered the attention of President-elect Donald Trump DeFi project World Liberty Financial, which purchased some $500,000 worth of tokens on Saturday, blockchain information confirmed. ENA subsequently rallied 25% over the weekend earlier than paring among the advance on Monday.
