UStb and USDe Relationship: Benefits in Unstable Market Conditions

Ethena crypto emphasized that although UStb is a separate product, the two stablecoins can support each other. USDe often faces risks related to the derivatives market and the volatility of collateralized assets, especially when negative funding rates occur.

In such conditions, Ethena can close the USDe hedge position and allocate its reserve assets to UStb to reduce the risk.

This provides flexibility for Ethena to maintain the stability of both products, especially in unfavorable market conditions. For example, when the funding rate decreases, UStb can be a solution to maintain the stability of USDe.

In addition, UStb will be introduced as an additional option for margin collateral on crypto exchanges such as Bybit and Bitget, where USDe is already used.

With the addition of UStb, exchange partners will have two different stablecoin products to choose from for collateral purposes, which can increase the adoption of Ethena stablecoin in the wider market.