The firm created its ethereum-backed stablecoin USDe after the prominent Terra ecosystem collapse of 2022.
The firm created USDe after the Terra ecosystem collapse of 2022.Connect/Create WalletNo wallet? No problem. You can set one up for free. We recommend Torus for first-time users.The web3 venture firm Dragonfly Capital led a $6 million seed funding round for Ethena, a startup building Ethereum-backed stablecoins.
Ethena's other funders include Deribit, Bybit, OKX, Gemini, Huobi and BitMEX founder Arthur Hayes, according toEthena maintains the peg for its USDe stablecoin by using collateral from users to short ether using perpetual swaps and hedge price exposure. The company has also created a savings bond which uses staked ETH and swap margins to generate yield.
"In crypto, you're trying to create a parallel financial system, but the most important financial instrument in the entire space is still completely tethered to the existing system," Ethena founder Guy Young told Axios."We're trying to create something that exists outside of the banking system." Ethena's next move is to finish its testnet phase sometime in the third quarter, launching its USDe stablecoin and savings bond after completion.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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