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  • Ethena Overview
  • How USDe Works
  • Genesis Story
  • Alternatives: Existing Stablecoins
  • Size of the Opportunity
  • USDtb
  • Ethena Network
  • ENA
    • Tokenomics
  • Video Guides
    • How to Buy USDe
    • How to Stake USDe
    • How to Stake ENA
    • How to [Un]lock positions
  • Solution Overview
    • USDe Overview
      • Delta-Neutral Stability
      • Delta-Neutral Examples
      • Scalability
      • Censorship Resistance
      • Regulatory Compliance
    • Protocol Revenue Explanation
      • Historical Examples
      • Rewards Mechanism Explanation
      • sUSDe Rewards Mechanism
    • Underlying Derivatives
      • Futures vs Perpetuals
      • Inverse vs Linear Contracts
      • Basis Spread
    • Peg Arbitrage Mechanism
    • Liquid Stables: Dynamic Allocation
      • Current Allocation Approach
    • Scenario Analysis
    • Risks
      • Funding Risk
      • Liquidation Risk
      • Custodial Risk
      • Exchange Failure Risk
      • Backing Assets Risk
      • Stablecoin-Related Risks
      • Margin Collateral Risks
    • Governance
      • Risk Committee
  • Backing Custody & Security
    • Overview
      • Off-Exchange Settlement in detail
      • Copper Clearloop Case Study
    • Real-Time Dashboards
  • Solution Design
    • Overview
      • Github Overview
    • Key Trust Assumptions
      • Matrix of Multisig and Timelocks
    • Minting USDe
      • Order Validity Checks
      • User Security Measures
      • Mint & Redeem Key Functions
      • Mint and Redeem Contract V2
    • Staking USDe
      • Staking Key Functions
      • User Security Measures
    • Use of Oracles
    • Hedging System
      • Internal Services
      • Managing Risk from dependencies
    • Reserve Fund
    • Key Addresses
    • Backing Asset Custody
  • API Documentation
    • Overview
  • Resources
    • Custodian Attestations
    • FAQ
    • Data Repository
    • USDe + sUSDe Custodian Availability
    • Audits
    • Media Assets
    • General Risk Disclosures
    • Privacy Policy
    • Terms of Service
    • USDe Terms and Conditions - EEA
    • USDe Terms and Conditions - Non EEA
    • USDe Mint User Agreement - Non EEA
    • Testnet
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Ethena Overview

//Enabling Internet Money

Last updated 3 months ago

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Ethena's USDe is not the same as a fiat stablecoin like USDC or USDT. USDe is a synthetic dollar, backed with crypto assets and corresponding short futures positions.

This means that the risks implicated by interacting with USDe are inherently different.

Please refer to our extensive section for more information.

Overview

Ethena is a synthetic dollar protocol built on Ethereum that provides a crypto-native solution for money, USDe, alongside a globally accessible dollar savings asset, sUSDe. Ethena's synthetic dollar, USDe, provides the crypto-native, scalable solution for money achieved by delta-hedging Bitcoin, Ethereum and Solana spot assets using perpetual and deliverable futures contracts, as well as holding liquid stables such as USDC and USDT.

USDe is fully-backed (subject to the discussion in the Risks section regarding events potentially resulting in loss of backing) and free to compose throughout CeFi & DeFi.

USDe peg stability is supported through the use of delta hedging derivatives positions against protocol-held backing assets, maintaining a relatively stable value with reference to the value spot crypto assets as well as futures positions.

The inclusion of liquid stables (such as USDC and USDT) enhances the efficiency of the delta hedging process, while also potentially acting as a safeguard in bear markets when funding rates and futures basis are suboptimal. Liquid stables may earn rewards depending on where they are held, potentially enhancing overall protocol revenue.

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Quick Links

Users are currently able to:

  • Permissionless Acquire USDe. Access external AMM pools to acquire or dispose of USDe with assets such as USDT or USDC.

  • Direct Mint USDe. Transfer accepted reserve assets and receive USDe, subject to clearing KYC/KYB checks exclusively for approved market making counterparties. See Supplemental USDe Terms and Conditions.

  • Direct Redeem USDe. Burn USDe & receive backing assets, subject to clearing KYC/KYB checks exclusively for approved market making counterparties. See Supplemental USDe Terms and Conditions.

  • Stake & Unstake USDe. Receive rewards from protocol revenue. Available exclusively for users in permitted jurisdictions.

Risk
s
https://ethena.fi/
https://t.me/ethena_labs
https://discord.gg/ethena
https://twitter.com/ethena_labs
https://www.linkedin.com/company/ethena-labs/
How to Buy USDe
Ethena FAQsEthena Labs on Notion
Ethena ChartbookEthena Labs on Notion
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