Solana

Ethena USDe

Ethena Labs, the company that developed the synthetic stablecoin USDe, has <a href="https://gov.ethenafoundation.com/t/proposal-onboard-sol-as-a-usde-backing-asset/232" rel="noopener noreferrer nofollow">recommended</a> adding Solana (SOL) to the assets that back USDe. This strategic plan will expand and enhance security to USDe&#39;s collateral. Currently, SOL is awaiting approval as a new investment proposal from Ethena’s Independent Risk Committee.USDe’s Synthetic ModelStablecoins like Tether (USDT) and Circle’s USD Coin (USDC) are backed by fiat reserves at 1:1. However, synthetic stablecoins like USDe, which work on a synthetic model, use collateralized stablecoins and a hedged cash–and–carry trade approach to retain its $1 price peg. This approach entails using futures contracts of large notional value to control the stablecoin&#39;s value.If this proposal is approved, Ethena Labs will be allowed to use $100-200 million in SOL as collateral, or 5-10% of Solana&#39;s global open interest. This is similar to the previous approach that Ethena undertook to ensure that it would use <a href="https://cryptotale.org/analyst-predicts-gains-as-bitcoin-nears-key-resistance-level/" rel="noopener noreferrer nofollow">Bitcoin</a> (BTC) and <a href="https://cryptotale.org/ethereum-nears-key-level-can-it-reclaim-2433-for-a-rally/" rel="noopener noreferrer nofollow">Ethereum</a> (ETH) to back the USDe stablecoin.Ethena also explores using Solana liquid staking tokens (LSTs), such as BNSOL and bbSOL. These would function similarly to ETH LSTs, which comprise one-third of Ethena’s ETH collateral allocation.<a href="https://cryptotale.org/ethena-labs-proposes-adding-solana-sol-as-usde-collateral/" rel="noopener noreferrer nofollow">Read more on Cryptotale.</a>Visit the links for more information <a href="https://cryptotale.org/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/cryptotalemedia" rel="noopener noreferrer nofollow">Twitter </a>| <a href="https://t.me/cryptotale_news" rel="noopener noreferrer nofollow">Telegram </a>| <a href="https://www.instagram.com/cryptotalenews/" rel="noopener noreferrer nofollow">Instagram </a>|

Ethena Labs Proposes Adding Solana (SOL) as USDe Collateral

CryptoTale

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