Binance will list Ethena (ENA) at 16:00 on April 2, 2024 (Eastern Eight District Time), and open the ENA/BTC, ENA/USDT, ENA/BNB, ENA/FDUSD and ENA/TRY trading markets.
#Athena
ENA project introduction:
ENA’s financing is approximately US$30 million, with a valuation of US$300 million. BinanceLabs Deribit, Bybit, OKX, Gemini, Huobi, Arthur Hayes and their family offices have all participated in the investment. Ethena, the synthetic dollar protocol, is a new project belonging to the RWA sector. It is an open hedge fund that mainly uses spot purchases of ETH for pledge and tokenizes its trading collateral into stable coins. Ethena Labs' current main product is the "Delta-neutral" stablecoin USDe, and it is building a derivatives infrastructure to enable Ethereum to transform into global Internet bonds through delta-neutral positions on stETH, thus creating the first crypto-native, crypto-enabled currency. Stablecoin for earnings: USDE
Token information:
Total amount 15,000,000,000 ENA
Initial circulation: 1,425,000,000 ENA (9.5% of the maximum supply of the token)
Total amount of this mining: 300,000,000 ENA (2% of the maximum supply of tokens)
BNB Mining Pool: A total of 240,000,000 ENA can be mined (80%)
FDUSD Mining Pool (the website will be updated within five hours of this announcement and before the mining activity opens): A total of 60,000,000 ENA can be mined (accounting for 20%)
Overview
Ethena is a synthetic dollar protocol built on Ethereum that will provide a crypto-native solution for currencies that do not rely on the infrastructure of the traditional banking system, as well as a globally accessible dollar-denominated savings tool - the "Bond of the Internet". Ethena's synthetic dollar USDe will provide the first censorship-resistant, scalable and stable crypto-native solution for funding achieved through Delta Hedge collateralized Ethereum collateral. USDe will be fully transparently supported on-chain and freely composed throughout DeFi.
The stability of the U.S. dollar peg is ensured by using delta-hedged derivative positions against the collateral held by the protocol.
The “Internet Bond” will combine proceeds from staking Ethereum with funding and basis from perpetual and futures markets, creating the first on-chain crypto-native “bond” that can serve as a USD-denominated savings instrument for users in permitted jurisdictions Jurisdictions.
Official website: https://www.ethena.fi/
Telegram: https://t.me/ethena_labs
Discord: https://discord.com/invite/HVfuYyNm8S
Twitter: https://twitter.com/ethena_labs
LinkedIn: https://www.linkedin.com/company/ethena-labs/
Ethena project advantages:
Ethena was built to solve the biggest, most obvious immediate need in crypto. DeFi attempts to create a parallel financial system, but stablecoins are the most important financial instrument and remain completely tethered and dependent on traditional banking infrastructure. Ethena's goal is to provide a scalable form of crypto-native currency to enable a truly decentralized financial system.
Ethena Labs believes that delta-neutral synthetic dollars, which hold collateral outside the banking system and have access to centralized liquidity, can solve the challenges of existing stablecoin designs.
USDe is enabled by Ethena Labs by hedging the delta of spot assets backing the token during minting. Therefore, USDe has the following advantages:
i) Scalability is achieved by utilizing derivatives, which allows USDe to scale through capital efficiency. Since the pledged ETH collateral is perfectly hedged by an equivalent notional short position, synthetic USD only requires a 1:1 “collateralization”.
ii) Provide stability by executing hedging on transferred assets immediately upon issuance, ensuring USDe supports the synthetic USD value under all market conditions.
iii) Resist censorship by decoupling backing from the banking system and storing trustless backing assets off-chain in a centralized liquidity venue in an on-chain, transparent, 24/7 auditable, programmatic escrow account solution.
Risks and Opportunities:
Ethena’s current TVL is 1.4 billion, and sUSDe APY is 35%. The total number of ENA tokens is 15 billion, with an initial circulation of 14.25. According to aevo data, the current futures price is US$0.6. If it remains unchanged, the opening market value will be about 1 billion, which is a project with a large opening market value.
How does Ethena secure protocol collateral from hackers or failed transactions?
Protocol collateral is only held in custody by audited smart contracts and regulated and licensed custodians and MPC wallet providers. Our custodian and MPC wallet provider partners have the highest possible security and are used by all institutional players in the space. Their use of custodians and MPC wallet providers also allows us to host OTC funds but still have funds available on the exchange to collateralize Delta hedging derivatives positions. In the event of an exchange failure, it is not expected that funds will be locked or insolvent, and Ethena shall retain control to support all minting and redemption requests for USDe.
Having protocol collateral hosted by an exchange puts the protocol at risk if the exchange limits/delays withdrawals or shuts down suddenly like FTX. Our ability to utilize over-the-counter custody providers allows us to enjoy the benefits of disintermediation of incentives and the availability of collateral for trading in the most liquid markets.
#Athena
The output generated by Ethena comes from two different sources:
Staking ETH yield
Perpetual futures financing rate or expiry futures basis
In terms of collateral, pledging Ethereum to support USDe will provide a yield of about 4-5% currently. Delta hedge derivatives positions that offset collateral can also earn income from perpetual futures financing rates and forward futures basis.
Basis is the difference between the spot price of an asset and the price of the corresponding expiring futures contract. For more information on basis trading click here.
Funding rate is a periodic payment to long or short traders based on the difference between the spot price and the perpetual contract market. Therefore, traders will pay or receive funding based on the demand of long or short positions based on the open positions. When the funding rate is positive, long positions pay short positions; when it is negative, short positions pay long contracts. This mechanism ensures that long-term divergence between the two market prices is avoided.
Over the past 3 years, the futures basis and perpetual funding rate have averaged ~6-7% yields for shorts, resulting in higher yields than staking Ethereum.
The protocol’s earnings are variable, transparent, sustainable and provided to users based on a staking mechanism (minus the earnings generated by the insurance fund).
At the same time, BNB, as a golden shovel, uses#FDUSDto enter the ENA mining pool for mining. This event lasts for 3 days!
UTC+8 It will open on time at 08:00 on March 30, 2024, and new users can share 200,000 $ENA through transactions.
Recently, BNB has become a golden shovel, and it is very promising in the long term.
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