Ethena Labs Announces Integration of Bitcoin as Backing Asset for USDe Stablecoin
Ethena Labs has announced plans to scale the USDe stablecoin by adding Bitcoin as an additional backing asset. This move is aimed at enhancing the stability of USDe, which currently stands at $2 billion.
Benefits of Integrating Bitcoin
- Increased stability of USDe
- Leveraging Bitcoin’s liquidity
- Enhancing the stablecoin’s existing framework
The integration of Bitcoin as a backing asset is expected to increase USDe’s capacity to scale by over 2.5 times. Ethena Labs highlighted that with $25 billion of BTC open interest available for delta hedging, the scalability of USDe has significantly improved.
Furthermore, Bitcoin derivative markets have shown faster growth compared to Ethereum, providing enhanced scalability and liquidity for delta hedging purposes.
MakerDAO’s Proposed Investment in USDe
MakerDAO has proposed a $600 million investment in USDe and its staked variant, sUSDe, through Morpho Labs. This investment aims to diversify MakerDAO’s portfolio and leverage Morpho Labs’ lending capabilities.
- User preferences for DeFi products
- Reducing liquidity risks
- Augmenting Ethena’s insurance fund
The proposed investment initially caps at $600 million, with a potential increase to $1 billion in the future.
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.
