$ENA is a synthetic dollar protocol based on Ethereum, with its core product USDe achieving price stability through a Delta hedging mechanism. When users stake ETH and other crypto assets to mint USDe, the protocol opens an equivalent short position in the perpetual contract market to hedge against price volatility, similar to the 'principal protection' feature of traditional US Treasuries. The yield of USDe comes from three parts: the staking yield of underlying assets, perpetual contract funding rate arbitrage, and stablecoin income.
The total token supply of ENA is 15 billion, with 30% allocated to investors and the core team, and 25% for ecological development. Users staking USDe can earn the yield token sUSDe, while ENA holders can participate in protocol governance and share in the income. In July 2025, ENA saw its price surge from $0.32 to $0.6 due to its listing on the South Korean exchange Upbit and an institutional buyback plan, but subsequently fell back to around $0.47 due to token unlocks and whale sell-offs.
Short-term risks are concentrated on token selling pressure and regulatory uncertainty. On August 5, about 170 million ENA were unlocked, which may lead to market oversupply; the U.S. regulatory stance on synthetic assets remains unclear, and tighter policies could affect institutional cooperation. On the technical side, the protocol relies on centralized custodial institutions and the depth of the perpetual contract market, and extreme market conditions could erode hedging costs and yields.
In the long term, Ethena plans to integrate real assets such as U.S. Treasuries and real estate, and achieve multi-chain interoperability through LayerZero to expand the payment scenarios for USDe. If traditional financial institutions adopt its compliant product iUSDe, it could attract over $10 billion in capital inflows. Currently, the market capitalization of ENA is about $3.3 billion; if the bull market continues, it may challenge the $1.5 target by 2030, but caution is needed regarding market volatility and increasing competition.
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