Explore how Ethena unleashes the potential of USDe and ENA.

In the rapidly evolving world of cryptocurrency, Ethena Crypto has emerged with its innovative decentralized finance (DeFi) protocol, attracting global investors' attention with its synthetic dollar USDe and governance token ENA. Ethena not only provides a stable currency solution that does not rely on traditional banks but also offers users a global high-yield savings tool through the "internet bond" sUSDe. This article will delve into Ethena's unique mechanisms, investment potential, and how to participate in this exciting project.

What is Ethena Crypto?

Ethena is a synthetic dollar protocol based on Ethereum, dedicated to providing stable, scalable, and censorship-resistant monetary solutions for the cryptocurrency market. Its core products include:

1. USDe (Synthetic Dollar):

Unlike traditional stablecoins (such as USDT or USDC), USDe is fully backed by cryptocurrency assets (like Bitcoin, Ethereum, Solana) and their corresponding futures short positions. Ethena employs a delta hedging strategy, utilizing perpetual contracts and deliverable futures to ensure the stability of USDe. This mechanism allows it to operate without relying on traditional banking infrastructure, providing reliable liquidity and stability for the DeFi and Web3 ecosystem.

2. sUSDe (Internet Bond):

sUSDe is a yield-bearing asset of Ethena, where users can stake USDe to achieve high returns. sUSDe combines the native yield from Ethereum staking with financing and basis returns from the derivatives market, providing users with a globally accessible dollar savings tool. Market data shows that the annual percentage yield (APY) of sUSDe can reach 10-13% during certain periods, far exceeding other stablecoin products.

3. ENA (Governance Token):

ENA is the governance token of the Ethena ecosystem, with a total supply of 15 billion tokens. Users holding ENA can participate in key decisions of the protocol, such as risk management, asset allocation of USDe, and potential partnerships. ENA also incentivizes community participation through airdrops and staking rewards.

The Core Advantages of Ethena: Why is it Gaining Attention?

Ethena stands out in the competitive DeFi market, winning the favor of investors and developers with the following advantages:

1. Independent of traditional finance

USDe does not rely on traditional bank reserves but instead achieves support through blockchain technology and crypto assets. This makes it a truly decentralized currency solution, especially suitable for areas with limited traditional financial infrastructure.

2. High returns and stability are both achieved.

Through delta hedging strategies, Ethena is able to maintain the dollar peg of USDe amidst market fluctuations while providing sustainable high yields for sUSDe users. Unlike Terra's UST, USDe maintains its value through hedged derivative positions, ensuring stability even during extreme fluctuations in Ethereum prices.

3. Global Savings Tool

Ethena's "Internet Bond" sUSDe provides a barrier-free dollar savings tool for global users. In emerging economies, users can directly use USDe for savings and payments through platforms like Telegram, enjoying up to 10% APY.

4. Powerful ecological support

Ethena has received support from well-known investment institutions such as Dragonfly, Franklin Templeton, and Arthur Hayes, with a total financing amount exceeding $100 million. In addition, its collaboration with the TON blockchain will bring USDe into Telegram's ecosystem of 1 billion users, significantly expanding its market influence.

Ethena's Market Performance and Investment Potential

By May 2025, USDe has become the third largest dollar-pegged asset in the crypto market, with an issuance scale only second to USDT and USDC. According to CoinMarketCap data, the current price of ENA is approximately $0.4098, with a 24-hour trading volume of $391 million, ranking 46th in market capitalization.

Investment Highlights of ENA Token

• High growth potential: The fully diluted valuation (FDV) of ENA is $5.6 billion, and the market is generally optimistic about its expansion potential in the stablecoin sector.
• Airdrop and Staking Rewards: Ethena has announced airdrop of 75 million ENA tokens (5% of the total supply) to attract a large number of users to participate in its "shard campaign". Users who stake ENA can also receive ecological rewards and governance rights.
• Market Sentiment: On platform X, investors are optimistic about Ethena's bull market prospects, believing it is likely to become a core project of the next DeFi boom.

Future Prospects of Ethena

Ethena Labs plans to launch its Layer-1 blockchain Converge in the second quarter of 2025, which is an EVM-compatible network focused on real-world assets (RWA) and stablecoins. Converge will use USDe and USDtb as gas tokens and will connect traditional finance with DeFi through a partnership with Securitize.

In addition, the integration of Ethena with TON makes it the first DeFi protocol to offer stablecoins within the Telegram ecosystem. In the future, Ethena may enable direct payment features through Apple Pay and TON debit cards, further promoting the global adoption of USDe.

Conclusion

Ethena Crypto is reshaping the future of decentralized finance through its innovative synthetic dollar USDe and governance token ENA. With high-yield sUSDe, a global savings tool, and the upcoming Converge blockchain, Ethena aims to become a leader in the stablecoin market. However, investors should thoroughly understand the risks and conduct independent research before participating.

Disclaimer: Cryptocurrency investments carry a high risk, and market volatility may lead to financial losses. Please conduct thorough research and carefully assess your risk tolerance before investing.

Author: Rooick Z., Gate researcher *This article only represents the author's views and does not constitute any trading advice. Investment involves risks, and decisions should be made cautiously. *The content of this article is original and copyright belongs to Gate. If reprinting is required, please indicate the author and source, otherwise legal responsibility will be pursued.