Ethena Labs’ synthetic dollar will be launched as margin collateral on cryptocurrency exchange Bybit as USDe token adoption grows.
The new integration will see USDe launched as a margin collateral for traders with an annual percentage rate (APR) of up to 20%.
According to Bybit’s co-founder and CEO Ben Zhou, this will bring more efficiency and flexibility to Bybit’s traders’ trading strategies. Zhou …
“By leveraging USDe, traders can now benefit from a unique combination of stability and potential returns while managing their collateral. For Bybit users, this means access to a range of stablecoin options, including crypto-native solutions like USDe.”
The new integration will allow Bybit users to earn rewards for their collateral, Ethena Labs founder Guy Young explained. Young told Cointelegraph:
“Users will be able to benefit from potential rewards and increased collateral value while trading on Bybit for the first time. This can be used to offset the funding costs for positions and provide more value to users.”
Ethena Labs is one of the most prominent protocols gaining popularity in 2024. According to José Maria Macedo, CEO of Delphi Labs and founding partner of cryptocurrency investment firm Delphi Ventures, Ethena could become the highest-yielding cryptocurrency project on the market.
Related: Ethena Labs Founder Clarifies USDe Stability Amid High Yield Concerns
Ethena Labs’ USDe Yields Are a Testament to the ‘Strength’ of the Protocol: Bybit CEO
Ethena’s USDe synthetic dollar launched in February with an APY of 27.6%, sparking widespread concern among crypto investors as the APY was significantly higher than the 20% yield that Anchor Protocol was offering on Terra’s UST before algorithmic stablecoin issuer Terra collapsed in May 2022.
However, according to the website, Synthetic Dollar has managed to maintain high yields of over 12.3% APY to over 262,000 users.
According to Bybit’s Zhou, these strong returns are further evidence of the protocol’s robustness.
“Ethena’s ability to maintain high yields on USDe despite initial concerns is a testament to the strength of the protocol. This performance is especially impressive given the challenging market conditions.”
Related: Hong Kong’s Largest Online Broker Launches Bitcoin and Ether Trading for Its 22 Million Users
Will USDe’s TVL Surpass $4 Billion After Bybit Integration?
Ethena’s USDe has over $3.2 billion in total locked value (TVL) five months after its launch. According to DeFiLlama, TVL has dropped by over 10.9% in the past month.
According to Ethena Labs’ Young, the $4 billion TVL mark is still a long way off, but the use cases introduced by the new integrations could fuel the growth of synthetic dollars.
“We hope this partnership will lead to broader adoption and use of USDe across a variety of use cases, and the opportunity for USD collateral on exchanges is multi-billion dollars, so we hope to play a meaningful role in that.”
Ethena Labs’ USD yields are publicly verifiable. Young told Cointelegraph that the synthetic dollar yields are generated through staking yields and shorting Ether perpetual futures contracts.
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