Ethereum

Million

USDe

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/ethena-labs-secures-14-million-for-synthetic-dollar-initiative/" data-wpel-link="internal">Ethena Labs Secures $14 Million for Synthetic Dollar Initiative</a><br></p>
<p class="p1" style="text-align: justify">Financial instruments tied to the US dollar are attempting to offer new opportunities for markets outside the country. Ethena Labs, a venture that received $14 million in funding for an Ethereum-based synthetic dollar, supports this claim. The Ethena team announced the fund, which is backed by venture capital firm Dragonfly among other investors, on February 16th.</p> 
<h2 class="p1" style="text-align: justify" id="ethena-secures-6-million-investment">Ethena Secures $6 Million Investment</h2> 
<p class="p1" style="text-align: justify">In an earlier investment round in 2023 to launch decentralized <a href="https://newslinker.co/category/finance/" data-wpel-link="exclude">finance</a> solutions built on the Ethereum network, Ethena successfully raised $6 million from <a href="https://en.coin-turk.com/binance-adds-new-trading-pairs-to-binance-spot-and-introduces-fdusd-stablecoin/" data-wpel-link="internal">Binance</a> Labs, Gemini, Bybit, Mirana Ventures, OKX Ventures, and Deribit.</p> 
<p class="p1" style="text-align: justify">The capital will support USDe, a synthetic dollar backed by delta-hedging strategies using Ethereum as collateral. According to data from blockchain analytics platform DefiLlama, the platform has locked in a total of $200 million in assets since its launch in December. The company stated the following:</p> 
<blockquote> 
 <p class="p1" style="text-align: justify"><strong>“USDe,”</strong> maintains its hard peg to the US dollar by delta-hedging the assets provided by users who mint USDe against short-term Ethereum collateral through continuous swaps to achieve delta-neutral stability.</p> 
</blockquote> 
<p class="p1" style="text-align: justify"><img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-315782 size-full" src="https://coin-turk.com/wp-content/uploads/2024/02/ethena.webp" alt="" width="2330" height="900"></p> 
<h2 class="p1" style="text-align: justify" id="noteworthy-details-about-usde">Noteworthy Details About USDe</h2> 
<p class="p1" style="text-align: justify">USDe aims to maintain its peg to the US dollar through a combination of hedging strategies. It uses financial derivatives such as arbitrage and continuous swap contracts to keep the cryptocurrency’s value stable against the dollar; this represents a different approach from typical stablecoin projects that use direct collateral or algorithmic methods to maintain their value. Guy Young, CEO of Ethena Labs, commented on the issue:</p> 
<blockquote> 
 <p class="p1" style="text-align: justify">“Stablecoin projects are seen as the most important tool within crypto, and despite issuers fully internalizing the yield, they are the only idea that finds real product market fit with a global demand of over $130 billion.”</p> 
</blockquote> 
<p class="p1" style="text-align: justify">For example, leading stablecoin issuer Tether reported a significant profit of $2.85 billion in the last quarter of 2023, including approximately $1 billion in interest earned from US Treasury securities that back most of the stablecoin assets, due to the impact of returns generated from Tether reserves:</p> 
<blockquote> 
 <p class="p1" style="text-align: justify">“The entire field relies on collateral-backed central stablecoin projects within the banking system. Providing a crypto-native synthetic dollar alternative is, in our view, the biggest opportunity in the space.”</p> 
</blockquote> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/ethena-labs-secures-14-million-for-synthetic-dollar-initiative/" data-wpel-link="internal">Ethena Labs Secures $14 Million for Synthetic Dollar Initiative</a></h5>

Ethena Labs Secures $14 Million for Synthetic Dollar Initiative

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