The fast progress of the Ethena stablecoin ecosystem continued on Friday as Ethena Labs introduced a partnership with institutional OTC desk Flowdesk, geared toward increasing entry to its two tokens — USDe and USDtb.
Flowdesk, whose purchasers embody token issuers, hedge funds and exchanges, will help buying and selling and reward packages tied to each stablecoins, the businesses stated.
USDe is Ethena’s artificial greenback, backed primarily by crypto belongings and stabilized by means of a delta-neutral hedging technique that retains its worth pegged to $1.
USDtb is backed by real-world belongings — primarily BlackRock’s tokenized cash market fund, BUIDL, and stablecoins — giving it a danger profile broadly similar to fiat-backed stablecoins like USDC (USDC) and USDt (USDT).
The announcement comes as USDe surpassed $14 billion in market capitalization, in line with CoinMarketCap, with its circulating provide climbing 21% over the previous month. That progress has propelled USDe into the place of the third-largest stablecoin by market cap, trailing solely USDT and USDC.
Ethena ecosystem attracts public gamers
Ethena’s fast progress has been fueled partially by USDe’s yield-generation mannequin, which permits holders to earn returns whereas offering engaging collateral for decentralized finance markets.
That yield potential was a key issue behind Mega Matrix’s $2 billion shelf registration, giving the general public holding firm flexibility to amass Ethena’s governance token, ENA. Proudly owning ENA would enable Mega Matrix to take part in governance and seize income generated by USDe.
Ethena’s cumulative income surpassed $500 million in August, bringing the protocol nearer to activating its anticipated “fee-switch” mechanism, which might distribute a share of protocol income to ENA holders.
One other soon-to-be public firm can also be eyeing Ethena. StablecoinX and TLGY Acquisition not too long ago secured $890 million as a part of a merger, with the brand new entity explicitly focusing on acquisitions of digital belongings — together with ENA.
Regardless of its fast progress, Ethena has been met with warning from market contributors cautious of derivatives-backed stablecoin fashions. Cointelegraph Analysis notes that artificial stablecoins face funding price volatility, since yields depend on constructive funding charges, in addition to counterparty danger and publicity to USDT-margined contracts.
The central query is whether or not artificial {dollars} can stay resilient throughout prolonged intervals of adverse funding charges or extended stress in derivatives markets.
For now, USDe has defied these issues, with demand persevering with to climb as customers seem keen to imagine artificial danger in change for yield.
Associated: ‘Ethena has 6x upside to Circle’: Mega Matrix doubles down on ENA ecosystem