Ethena Expands USDe Strategy into Equity Perpetuals to Pursue Higher Yields

Ethena announced that it will broaden the USDe basis‑trading model to include equity perpetual contracts. The move aims to capture funding rates that have averaged 14‑17.5% on major venues, far above Bitcoin’s 2.2% average this year.

Why Equity Perpetuals?

Funding on equity contracts has shown limited correlation with crypto funding, offering a potential source of yield when crypto leverage demand wanes. Open interest in equity perpetuals has risen from under $1 billion in March to about $6.2 billion, indicating growing liquidity.

Impact on USDe Backing

Ethena’s USDe backing currently totals roughly $4.04 billion, down from a peak of $15 billion last year. Crypto‑basis positions now represent only about 13% of USDe’s collateral. The protocol has shifted a larger share of reserves into DeFi lending, stablecoins, real‑world assets, and institutional credit, generating yields between 3.1% and 7%.

Supply Targets and ENA Buybacks

Ethena’s governance proposal ties ENA token buybacks to USDe supply milestones. The first trigger is set at $7.5 billion, with revenue allocation rising as supply reaches $10 billion, $15 billion and $20 billion. At current levels, USDe needs an additional $3.46 billion (about 86%) to hit the initial threshold.

Market Outlook

Equity perpetuals trade continuously on crypto venues, even when underlying stock markets are closed, raising questions about pricing and liquidity outside regular hours. Ethena expects open interest and volume in this sector to surpass crypto perpetuals on major venues within roughly two years.