Ethena (USDe) – The Latest Stablecoin Hype Train
The latest stablecoin hype train is underway in the form of Ethena (USDe), catching the attention of Bitwise President Teddy Fusaro.
Bitwise Examines Ethena (USDe)
In a recent Twitter thread, Fusaro highlighted the mechanics of USDe, suggesting it could be the fastest-growing USD-denominated asset in crypto history.
- USDe operates similarly to an ETF.
- The protocol accepts contributions from ‘APs’ and issues ‘units’ (USDe tokens).
- The portfolio includes Bitcoin (BTC), Ethereum (ETH), ETH liquid staking tokens, and Tether USDT.
- The reserves generate yield through staked ETH and futures interest, distributed to USDe holders.
- Holders can stake USDe to receive sUSDe and additional yield.
Fusaro pointed out that USDe presents unique risks, such as exchange counterparty risk and smart contract risk, but also highlighted its potential for massive interest at scale.
USDe Versus Other Stablecoins
Unlike traditional stablecoins backed by centralized reserves, USDe’s portfolio is delta neutral and offers yield to holders. While risks exist, Fusaro believes that USDe’s rapid growth and market cap increase demonstrate significant support.
USDe’s market cap has grown to $2.36 billion, making it one of the largest stablecoins in circulation, showing the potential for further growth and adoption in the crypto space.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.