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Ethena LabsCustodian Attestations of Assets Backing USDe: November
In an effort to improve the transparency of the Ethena protocol’s backing assets beyond our current collateral and exchange breakdown provided on the dashboards, we are excited to share our thirteenth attestation reports from all integrated custodians, verifying the assets backing USDe reside off-exchange within institutional custodial solutions. Attestation reports will be released on a monthly basis to provide regular updates as to the amount and location of the assets backing the protocol....
Ethena LabsSeason 5 Update
Season 4 HighlightsToday marks the end of Ethena Season 4 and the beginning of Season 5. Season 4 saw meaningful expansion of USDe across major venues. USDe became the fastest dollar asset to reach $10B in supply and continues to grow on the back of deeper integrations and partnerships. USDe’s adoption across DeFi grew significantly. Notably, “Aavependlethena” (where Pendle’s interest rate derivatives on USDe and sUSDe are used as collateral on Aave) grew to $6B+ in scale, reflecting USDe’s e...
Ethena LabsENA Token Launch
The Holy Grail: Internet MoneyApril 1st marks the end of the Ethena Shard Campaign, which ran for a duration of just 6 weeks in total - one of the industry’s shortest pre-token campaigns yet. USDe supply grew to over $1.3bn today. This represents the fastest USD-denominated asset to reach >$1bn supply ever in crypto. Ethena’s USDe supply is now: >1.5x larger than the entire tokenized treasury RWA market >3x larger than the entire onchain ETH open interest for every DEX combined Higher than al...
>2.2K subscribers
Ethena LabsCustodian Attestations of Assets Backing USDe: November
In an effort to improve the transparency of the Ethena protocol’s backing assets beyond our current collateral and exchange breakdown provided on the dashboards, we are excited to share our thirteenth attestation reports from all integrated custodians, verifying the assets backing USDe reside off-exchange within institutional custodial solutions. Attestation reports will be released on a monthly basis to provide regular updates as to the amount and location of the assets backing the protocol....
Ethena LabsSeason 5 Update
Season 4 HighlightsToday marks the end of Ethena Season 4 and the beginning of Season 5. Season 4 saw meaningful expansion of USDe across major venues. USDe became the fastest dollar asset to reach $10B in supply and continues to grow on the back of deeper integrations and partnerships. USDe’s adoption across DeFi grew significantly. Notably, “Aavependlethena” (where Pendle’s interest rate derivatives on USDe and sUSDe are used as collateral on Aave) grew to $6B+ in scale, reflecting USDe’s e...
Ethena LabsENA Token Launch
The Holy Grail: Internet MoneyApril 1st marks the end of the Ethena Shard Campaign, which ran for a duration of just 6 weeks in total - one of the industry’s shortest pre-token campaigns yet. USDe supply grew to over $1.3bn today. This represents the fastest USD-denominated asset to reach >$1bn supply ever in crypto. Ethena’s USDe supply is now: >1.5x larger than the entire tokenized treasury RWA market >3x larger than the entire onchain ETH open interest for every DEX combined Higher than al...
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USDe supply crossed $600m this morning, only 2 weeks after our public launch. Ethena’s Shard Campaign is currently in its second epoch, after the first filled out in less than a week, bringing over $100m of liquidity to Curve. sUSDe is yielding 33% and USDe-USDT is the 4th highest volume pool on Uniswap.
The team has been taken aback by the growth of USDe and this post aims to highlight the top charts we’re monitoring across perpetual futures, DeFi integrations, and USDe itself.
USDe supply has passed $600,000,000 with a 7d growth rate of 40%.
That growth has outpaced virtually every stablecoin/synthetic dollar in the industry over their first 100 days launched to the public.
Daily active addresses for USDe have also surpassed most onchain stablecoins/synthetic dollars at about 1k daily active addresses today.
sUSDe supply has crossed $250m. Interestingly, the staking ratio has decreased as the shard campaign has progressed, with just 40% of USDe staked for sUSDe at the moment.
sUSDe is yielding 33% over the last 7 days, up from last week’s average of 24%.
Yesterday was the largest day of USDe minting so far, with over $65m worth of mints.
USDe price volatility has been low as whitelisted market makers can mint/redeem USDe with Ethena for $1, profiting from the arbitrage when USDe demand increases its price above $1.
We can see demand for USDe onchain has kept USDe price consistently above $1 on DEXs.
While its a short sample size, over the last two days USDe peg volatility has outperformed both FRAX and DAI.
Average Peg Volatility since 28th Feb:
USDe: 0.033% ; DAI: 0.040% ; FRAX: 0.047%
One of the biggest drivers of USDe demand has been via DeFi integrations. As part of the second epoch of Ethena’s shard campaign, Pendle’s newly deployed USDe pool is eligible for shards. Specifically, the YT-USDe and wrapped USDe tokens are earning 10x shards, with the YT offering up to 200x leverage at the time of writing.
Since deploying the USDe pool, Pendle has hit all time highs in daily volume in back to back days, with $167m of total daily volume yesterday.
The PT-USDe token, sacrifices shards for a fixed yield of 74% at the time of writing, while LP’s have provided $30m in Pendle USDe liquidity, earning over 200% APY from a combination of swap fees, Pendle incentives, shards and a portion of fixed yield.
Overall, there has been over 90m of USDe wrapped in Pendle in a couple of days, and the cap has been lifted from 100m to 150m as a result of the surging demand.
After incentivizing Curve liquidity in epoch 1 of the shard campaign, there is over $100m of liquidity in USDe Curve pools, with nearly $30m worth of USDe liquidity.
Thanks to demand for USDe, Curve pool weights are underweight USDe, with the most liquid pool, USDC-USDe, split 60:40 USDC:USDe.
The Uniswap USDe-USDT pool was also the 4th largest Uniswap pool by trading volume yesterday, and has done over $500m in total volume since its launch, on just $3m of TVL.
Funding rates have been elevated across the board during this market rally. ETH open interest-weighted funding rates touched 80% yesterday and have consistently settled above 20% annualized over the last two weeks.
ETH open interest rose alongside funding rates, surpassing $8.5bn on major exchanges, up from $6bn to start the year. With increasingly more of ETH’s supply locked for points or staked in the likes of Eigenlayer, it seems more investors are turning to perp markets to get long exposure to ETH.
At $600m supply, Ethena represents roughly 7% of that ETH open interest today on major exchanges.
Finally, with the assets backing the protocol yielding over $2m this week, the portion of yield generated by the assets backing unstaked USDe was sent to the insurance fund, worth over $1.3m. This distribution, alongside a transfer of $8m from the recent fundraising round, brings the protocol reserve fund to $11.8m.
More on the recent distributions to the reserve fund here.
We are incredibly excited to witness the growth of USDe in such a short amount of time.
We look forward to checking in again shortly, when USDe supply hits $1bn.
USDe supply crossed $600m this morning, only 2 weeks after our public launch. Ethena’s Shard Campaign is currently in its second epoch, after the first filled out in less than a week, bringing over $100m of liquidity to Curve. sUSDe is yielding 33% and USDe-USDT is the 4th highest volume pool on Uniswap.
The team has been taken aback by the growth of USDe and this post aims to highlight the top charts we’re monitoring across perpetual futures, DeFi integrations, and USDe itself.
USDe supply has passed $600,000,000 with a 7d growth rate of 40%.
That growth has outpaced virtually every stablecoin/synthetic dollar in the industry over their first 100 days launched to the public.
Daily active addresses for USDe have also surpassed most onchain stablecoins/synthetic dollars at about 1k daily active addresses today.
sUSDe supply has crossed $250m. Interestingly, the staking ratio has decreased as the shard campaign has progressed, with just 40% of USDe staked for sUSDe at the moment.
sUSDe is yielding 33% over the last 7 days, up from last week’s average of 24%.
Yesterday was the largest day of USDe minting so far, with over $65m worth of mints.
USDe price volatility has been low as whitelisted market makers can mint/redeem USDe with Ethena for $1, profiting from the arbitrage when USDe demand increases its price above $1.
We can see demand for USDe onchain has kept USDe price consistently above $1 on DEXs.
While its a short sample size, over the last two days USDe peg volatility has outperformed both FRAX and DAI.
Average Peg Volatility since 28th Feb:
USDe: 0.033% ; DAI: 0.040% ; FRAX: 0.047%
One of the biggest drivers of USDe demand has been via DeFi integrations. As part of the second epoch of Ethena’s shard campaign, Pendle’s newly deployed USDe pool is eligible for shards. Specifically, the YT-USDe and wrapped USDe tokens are earning 10x shards, with the YT offering up to 200x leverage at the time of writing.
Since deploying the USDe pool, Pendle has hit all time highs in daily volume in back to back days, with $167m of total daily volume yesterday.
The PT-USDe token, sacrifices shards for a fixed yield of 74% at the time of writing, while LP’s have provided $30m in Pendle USDe liquidity, earning over 200% APY from a combination of swap fees, Pendle incentives, shards and a portion of fixed yield.
Overall, there has been over 90m of USDe wrapped in Pendle in a couple of days, and the cap has been lifted from 100m to 150m as a result of the surging demand.
After incentivizing Curve liquidity in epoch 1 of the shard campaign, there is over $100m of liquidity in USDe Curve pools, with nearly $30m worth of USDe liquidity.
Thanks to demand for USDe, Curve pool weights are underweight USDe, with the most liquid pool, USDC-USDe, split 60:40 USDC:USDe.
The Uniswap USDe-USDT pool was also the 4th largest Uniswap pool by trading volume yesterday, and has done over $500m in total volume since its launch, on just $3m of TVL.
Funding rates have been elevated across the board during this market rally. ETH open interest-weighted funding rates touched 80% yesterday and have consistently settled above 20% annualized over the last two weeks.
ETH open interest rose alongside funding rates, surpassing $8.5bn on major exchanges, up from $6bn to start the year. With increasingly more of ETH’s supply locked for points or staked in the likes of Eigenlayer, it seems more investors are turning to perp markets to get long exposure to ETH.
At $600m supply, Ethena represents roughly 7% of that ETH open interest today on major exchanges.
Finally, with the assets backing the protocol yielding over $2m this week, the portion of yield generated by the assets backing unstaked USDe was sent to the insurance fund, worth over $1.3m. This distribution, alongside a transfer of $8m from the recent fundraising round, brings the protocol reserve fund to $11.8m.
More on the recent distributions to the reserve fund here.
We are incredibly excited to witness the growth of USDe in such a short amount of time.
We look forward to checking in again shortly, when USDe supply hits $1bn.
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