Ethena Labs announced the addition of Bitcoin as a supported asset for the USDe synthetic dollar, capitalizing on the growing enthusiasm for the world’s oldest digital asset among traders.
In a series of updates, the decentralized finance (DeFi) protocol stated that combining USDe with Bitcoin would drive significant scalability, increase capacity by more than 2.5x, and enhance safety measures for traders. This strategic move comes as the Bitcoin derivatives market outperforms the Ether-based market.
“As Ethena’s expansion trajectory approaches $10 billion, this enhanced support provides a more resilient foundation, ensuring a more secure environment for users,” the protocol said, noting that USDe’s supply value currently stands at around $2 billion. I did.
Ethena also highlighted Bitcoin’s superior liquidity and duration profile for delta hedging compared to liquid staking tokens as key factors in its decision to incorporate Bitcoin as a supported asset.
Previously, USDe was only supported by staked Ether (ETH), as shown on the Ethena Labs website. However, growing trader interest in Bitcoin has prompted protocol adjustments.
Ethena noted that Bitcoin open interest has surged significantly, increasing 150% over the past year to reach $25 billion, more than doubling USDe’s scalability potential. In contrast, Ether’s open interest increased 100% over the same period, reaching $10 billion, according to data provided by the protocol.
Bitcoin’s strong demand coincides with an incredible surge in its speculative value. It’s currently trading at $68,384, up 4% in the last 24 hours, according to price data from The Block.
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