According to Wintermute’s governance forum, the Ethena Foundation has approved Wintermute’s proposal to share a portion of decentralized finance (DeFi) protocol revenues with token holders.
On November 6, cryptocurrency market maker Wintermute proposed allocating a portion of Ethena’s fee revenue to stakers of Ethena’s native token, ENA (ENA).
“The Ethena Foundation is pleased to share the news that a proposal to enable $ENA fee conversion has been approved by the Risk Committee,” the company said at its governance forum on November 15.
“The Foundation will work with the Risk Committee to finalize the parameters for enabling fee conversion by November 30 and follow the exact implementation mechanism.”
source: CoinMarketCap
relevant: Wintermute uses USDe from Ethena as trading margin
Last February, Ethena Labs launched an interest-bearing stablecoin called USDe that allows users to mint tokens including Bitcoin (BTC), Ethereum (ETH), liquid staking derivatives, and other stablecoins. I did it.
Ethena then uses off-chain financial derivatives to hedge against the inherent volatility of the portfolio.
According to CoinMarketCap, the circulating supply of USDe has surged to nearly $3.2 billion since issuer Ethena Labs launched the unique stablecoin in February.
Launched in April, Ethena’s ENA can be staked to sENA, which lacked a clear value generation mechanism prior to Wintermute’s governance proposal.
“The Ethena protocol has been and continues to generate significant amounts of real-world revenue, indicating a clear level of USDe (product-market fit),” according to Wintermute’s November 6 governance proposal.
“Unfortunately, sENA does not directly benefit from this revenue, creating a clear disconnect between sENA holders and protocol growth,” he added.
“It is time to acknowledge this and establish clear alignment between ENA holders and the basic fundamentals of the protocol.”
On October 25, Wintermute began accepting USDe as collateral for spot cryptocurrency and derivatives trading.
Wintermute’s clients can now “post USDe as collateral for options (credit default swaps), forwards and spot transactions,” the company said in a post on the X platform.
The stablecoin joins Wintermute’s existing list of cryptocurrency collateral that includes BTC, ETH, Solana (SOL), and USD Coin (USDC), Wintermute said.
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