The speedy development of the Ethena stablecoin ecosystem continued on Friday as Ethena Labs introduced a partnership with institutional OTC desk Flowdesk, aimed 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 applications tied to each stablecoins, the businesses mentioned.
USDe is Ethena’s artificial greenback, backed primarily by crypto property and stabilized by way of a delta-neutral hedging technique that retains its worth pegged to $1.
USDtb is backed by real-world property — primarily BlackRock’s tokenized cash market fund, BUIDL, and stablecoins — giving it a threat profile broadly akin 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 development 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 speedy development has been fueled partially by USDe’s yield-generation mannequin, which permits holders to earn returns whereas offering enticing 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. 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.
Another soon-to-be public firm can also be eyeing Ethena. StablecoinX and TLGY Acquisition lately secured $890 million as a part of a merger, with the brand new entity explicitly focusing on acquisitions of digital property — together with ENA.
Despite its speedy development, Ethena has been met with warning from market members cautious of derivatives-backed stablecoin fashions. Cointelegraph Research notes that artificial stablecoins face funding fee volatility, since yields depend on optimistic funding charges, in addition to counterparty threat and publicity to USDT-margined contracts.
The central query is whether or not artificial {dollars} can stay resilient throughout prolonged durations of unfavourable funding charges or extended stress in derivatives markets.
For now, USDe has defied these issues, with demand persevering with to climb as customers seem prepared to imagine artificial threat in alternate for yield.
Related: ‘Ethena has 6x upside to Circle’: Mega Matrix doubles down on ENA ecosystem
