Key Points
- Ethena (ENA) is up by over 10% today, according to CoinMarketCap data.
- ENA is now trading at $0.78.
Ethena (ENA) experienced a significant surge in price today, of more than 10%, according to the latest CoinMarketCap data.
At the moment of writing this article, ENA is trading at $0.78, with a total market cap of almost $1.2 billion.
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On their X account, the team at Ethena Labs shared a post revealing that with the recent changes, staking USDe now yields 2x sats and 37% APY. The average Gearbox levered sUSDe farmer earns 28x sats and a 145% APY.
On May 16, Ethena Labs shared that to date, the sUSDe contract has received protocol yield attributable to assets backing staked USDe, with the protocol retaining the remainder going to the sUSDe contract.
They noted that as a result sUSDe APY is 37.2%.
To date the sUSDe contract has received protocol yield attributable to assets backing staked USDe, with the protocol retaining the remainder
As of today, the retained portion is reduced to 20%, with the remainder going to the sUSDe contract
As a result sUSDe APY = 37.2% pic.twitter.com/lAMiFeCHMt
— Ethena Labs (@ethena_labs) May 16, 2024
The team noted that currently only 15% of USDe is staked in sUSDe. If the entire protocol backing generates about 7%, transferring returns from assets backing unstaked USDe to the staking contract, this will increase effective sUSDe APY to 37%.
Ethena Labs notes that if the average protocol return since launch of 23%, the implied sUSDe yield would increase to about 125%. This is a direct result of the low percentage of sUSDe being stakes and as the stake rate increases, the potential increase in sUSDe will be reduced.
The team also noted that as of the beginning of June, the Ethena Governance Committee will be in place with several of the leading risk management advisory businesses in the space, and at that point, the governance will play a more involved role in deciding the ongoing retention of the protocol returns.
The changes in place will last until at least the end of June, the team notes.
Ethena launches on Bybit next week, where USDe can be used across the platforms as collateral.
BitMEX founder, Arthur Hayes recently shared his belief that ENA will reach $10.
What is Ethena (ENA)?
Ethena is a synthetic dollar protocol built on Ethereum that provides a crypto-native solution for money that is not reliant on traditional banking system infrastructure, alongside a globally accessible dollar-denominated savings instrument – the Internet Bond.
Ethena Labs, the developer behind the Ethereum-based stablecoin USDe, has successfully raised $14 million in a strategic funding round in February 2024.
The round was co-led by Dragonfly and Maelstrom, the family office of Arthur Hayes, founder of BitMEX.
