Decentralized Finance (DeFi) Project Ethena Launches New Stablecoin
USDtb Token Aims to Provide Stability in Crypto Markets
Red-hot decentralized finance (DeFi) project Ethena has announced the launch of its new stablecoin, USDtb. The token aims to help stabilize the protocol’s flagship USDe token when crypto markets turn bearish.
USDtb Token Design
The USDtb token is designed to maintain a steady price of $1, with 90% of its reserves held in BUIDL, the tokenized money market fund issued by asset management behemoth BlackRock and tokenization firm Securitize.
Ethena’s Vision
“In light of the rapidly accelerating demand for different stablecoin options, we saw a clear opportunity to provide a new product that offers users an entirely different risk profile from USDe without them having to leave our trusted ecosystem,” Ethena founder Guy Young said in a statement.
Ethena’s Growth
Ethena is one of the fastest-growing DeFi platforms this year, attracting nearly $6 billion of user funds since its public launch in early 2024. The protocol’s flagship token USDe, marketed as a “synthetic dollar” with a steady $1 price, generates yield to investors by shorting bitcoin (BTC), ether (ETH), and solana (SOL) perpetual swaps and farming the funding rates.
New Offering
The new offering will allow Ethena to close the underlying derivatives positions behind USDe and divert the backing assets to USDtb during periods of negative funding rates and mitigating risks. The protocol also aspires to get USDtb accepted as collateral in the future for margin trading on centralized exchanges.
Custodians and Liquidity Providers
Ethena has enlisted Copper, Zodia Custody, Komainu, and Coinbase Institutional as custodians for USDtb, according to a press release. Liquidity providers for the token include Jump, Cumberland, Amber Group, GSR Markets, and SCB Limited.
Tokenization Grand Prix Application
Ethena has also applied with the new USDtb stablecoin for Sky’s, formerly MakerDAO, so-called Tokenization Grand Prix program that aims to invest up to $1 billion funds in tokenized real-world asset (RWA) products.
Governance Token
The protocol’s governance token recently garnered the attention of President-elect Donald Trump DeFi project World Liberty Financial, which purchased some $500,000 worth of tokens on Saturday, blockchain data showed. ENA subsequently rallied 25% over the weekend before paring some of the advance on Monday.
Conclusion
Ethena’s new stablecoin, USDtb, aims to provide stability in crypto markets by maintaining a steady price of $1. The token is designed to offer users a different risk profile from USDe without them having to leave the Ethena ecosystem. With its fast-growing user base and innovative approach to decentralized finance, Ethena is poised to continue making waves in the crypto market.
FAQs
Q: What is USDtb?
A: USDtb is a new stablecoin launched by Ethena, designed to maintain a steady price of $1.
Q: What is the purpose of USDtb?
A: The purpose of USDtb is to help stabilize the protocol’s flagship USDe token when crypto markets turn bearish.
Q: What is the reserve composition of USDtb?
A: USDtb has 90% of its reserves held in BUIDL, the tokenized money market fund issued by BlackRock and Securitize.
Q: What is the future plan for USDtb?
A: The protocol aspires to get USDtb accepted as collateral in the future for margin trading on centralized exchanges.
Q: Who are the custodians and liquidity providers for USDtb?
A: Ethena has enlisted Copper, Zodia Custody, Komainu, and Coinbase Institutional as custodians, and liquidity providers include Jump, Cumberland, Amber Group, GSR Markets, and SCB Limited.
Q: Has Ethena applied for any programs with USDtb?
A: Yes, Ethena has applied with the new USDtb stablecoin for Sky’s Tokenization Grand Prix program that aims to invest up to $1 billion funds in tokenized real-world asset (RWA) products.
Q: What is the governance token’s recent activity?
A: The protocol’s governance token recently garnered the attention of World Liberty Financial, which purchased some $500,000 worth of tokens on Saturday, blockchain data showed. ENA subsequently rallied 25% over the weekend before paring some of the advance on Monday.
