Ethena Labs Integrates with Top Exchange Wallets, Offers High-Yield Staking Rewards
Summary:
Ethena Labs, a synthetic stablecoin protocol, has integrated with major centralized exchange wallets, including Binance, Bybit, OKX, and Bitget. Users can now enhance their rewards by staking their USDe stablecoins. Remarkably, Ethena topped the list of the highest-earning decentralized app in crypto with an annual percentage yield of 67% on USDe, after launching its stablecoin. However, the yields, currently at 24%, come with inherent risks, necessitating adept handling of complex Ethereum derivatives. Ethena Labs founder, Guy Young, assured these yields are organic and sustainable, laying the comparison fears with the failed Terra Luna stablecoin, USTC, to rest.
Ethena Labs, a synthetic stablecoin platform, has announced its integration with four leading centralized exchange wallets - Binance, Bybit, OKX, and Bitget, effective from 10th April. Ethena developers have revealed that users can boost their rewards by 20% if they lock their USDe for a minimum period of seven days through these exchange Web3 wallets. These rewards, dubbed "Ethena sats," can later be converted into Ethena's native token, ENA, at the close of each campaign. To qualify, users need to first deposit their Ethena USDe stablecoins into their chosen exchange wallets, connect with the Ethena DeFi protocol, and stake their holdings. At the time of writing, the protocol had locked in a total value of $2.274 billion, thereby generating an annualized income of $178 million.
This reward structure of the protocol’s ecosystem has been successful in garnering significant attention and usage. As per data from blockchain analytics firm Lookonchain, since Ethena Staking Season 2's inception, the top ten wallets have staked a cumulative total of 37.5 million ENA, worth $51 million. Within less than a month of the USDe stablecoin launch on March 8, Ethena managed to become the most profitable decentralized application in crypto with a staggering annual percentage yield (APY) of 67% on USDe. At present, the stablecoins offer an APY of 24%.
However, this high yield depends on the trading profits from intricate Ethereum derivatives, which poses potential risks. Addressing the apprehensions about the high yield, Ethena Labs founder, Guy Young, in his February 22 interview with Cointelegraph, stated that their yields are organic and sustainable. Drawing a comparison with the failed Terra Luna stablecoin, USTC, he emphasized that Ethena's yields are derived from a mix of Ethereum consensus layer inflation rewards, fees paid to Ether stakers, the maximal extractable value fee captures obtained by Ether stakers, and trading proceeds of Ethena Labs. When Ethena receives long-position collateral assets required for minting USDe, it opens short derivative positions. The spread or the difference in value between these two positions is then distributed to USDe possessor as yield.
Published At
4/10/2024 9:24:51 PM
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