# ETHENA

By [andriibohdan.eth](https://paragraph.com/@andriibohdan) · 2024-04-03

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Ethena is a synthetic dollar protocol built on Ethereum that will provide a crypto-native solution for money not reliant on traditional banking system infrastructure, alongside a globally accessible dollar denominated savings instrument - the 'Internet Bond'.

**Understanding Ethena (ENA)**
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Ethena is a synthetic dollar protocol on [Ethereum](https://coingape.com/price/ethereum), offering a crypto-based alternative to traditional banking. It includes the USDe synthetic dollar and the ‘Internet Bond’ savings instrument. USDe is stable, censorship-resistant, and backed by Ethereum collateral. The protocol uses delta hedging for stability. The ‘Internet Bond’ combines yield from Ethereum staking with funding from markets, acting as a dollar savings option for users in certain jurisdictions. This on-chain solution is transparent, scalable, and free to use across DeFi platforms.  
  
Ethena Labs initiated a strategic [airdrop](https://coingape.com/glossary/airdrop/), distributing 750 million ENA tokens to early adopters, constituting 5% of the total token supply. This bold move aimed to reward loyal supporters while rapidly increasing ENA’s market capitalization. As a result, Ethena quickly rose to become the fifth-largest stablecoin issuer by market capitalization, reaching a significant milestone in its journey.

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*Originally published on [andriibohdan.eth](https://paragraph.com/@andriibohdan/ethena)*