Ethena has added BTC support positions to expand the scale of USDe.
The ETH-backed stablecoin project Ethena ENA, supported by BitMEX co-founder Arthur Hayes, will include BTC as collateral assets, explaining that this is beneficial for the expansion of USDe.
Ethena stated that since its launch, USDe has experienced significant growth, and currently, Ethena hedges 20% of the outstanding ETH contracts.
Table of Contents
No BTC Position Before Deadline
Although Ethena has stated that they will include Bitcoin, currently there is no presence of Bitcoin on their transparency page for collateral assets and hedging position list.
Criticism Towards Ethena's Mechanism
Despite criticism from prominent figures in the old DeFi generation like Andre Cronje regarding such high-yield stablecoins, stating that its mechanism is as flawed as the failed case of UST, it still has MakerDAO's favor, leaving him puzzled.
Prominent figure in the old DeFi generation, Andre Cronje, comments on Ethena: Mechanism is nearly impossible to achieve
Whether Ethena's increased transparency, utilization of ETH and BTC for collateral and hedging positions, along with the marketing of the governance token ENA, can build a stronger defense, remains to be seen.
Related
- BitGo's new stablecoin USDS is set to launch in 2025, sharing profits with liquidity providers.
- Pendle derivative protocol Penpie hacked, loses 27 million euros, PNP token plunges 40%
- MakerDAO renamed to Sky: Behind the Scenes! Account with a six-figure USD value almost fell into the hands of hackers.