ENA

Ethena is a synthetic dollar protocol developed on Ethereum that provides a crypto-native solution for money, the USDe, along with a globally accessible dollar savings asset, the sUSDe. Ethena's synthetic dollar, the USDe, offers a crypto-native and scalable solution for money, achieved through delta hedging of spot assets such as Bitcoin, Ethereum, and Solana, using perpetual and deliverable futures contracts, in addition to maintaining stablecoins like USDC and USDT.

The USDe is fully backed (subject to discussion in the Risks section regarding events that may result in loss of backing) and is free to compose in CeFi and DeFi.

The stability of the USDe's parity is supported by the use of delta hedging derivative positions against backing assets held by the protocol, maintaining a relatively stable value in reference to the spot value of cryptocurrency assets, as well as future positions.

The inclusion of liquid stablecoins (such as USDC and USDT) enhances the efficiency of the delta hedging process, and may potentially act as a safeguard in bear markets, when funding rates and the futures basis are below ideal levels. Liquid stablecoins can generate returns depending on where they are held, potentially increasing the overall income of the protocol.