Ethena Labs recently unveiled its USDe stablecoin on the public Ethereum mainnet, introducing an alternative to existing stablecoins like USDC and UST.
The synthetic US dollar asset employs sophisticated hedging mechanisms while providing enticing 27.6% APY staking rewards. However, the promise of such high yields has stirred controversy within crypto circles.
TLDR
- Ethena Labs launched its USDe stablecoin on public mainnet, offering 27.6% APY staking rewards
- The high yield sparked concerns about sustainability and potential yield inversion risks
- USDe utilizes delta-hedging strategies and has over $289 million locked in value
- Ethena announced a “Shard Campaign” to incentivize usage and growth of its USDe stablecoin
- The campaign rewards activities like liquidity provision and minting with decaying shard rewards over time
USDe aims to maintain its dollar peg through delta-hedging, shorting ETH derivatives to offset…
