It has long been thought that Ethena was merely a stablecoin protocol—a synthetic dollar (USDe) providing stable returns and some nice integrations.
When G, the founder of Ethena Labs, announced Ethena's 'convergence' roadmap this January, he didn't realize what was about to happen.
But as research deepened, I gradually realized that my thinking was too narrow.
Ethena is not just building a better stablecoin; it is constructing the monetary infrastructure of the internet: a system that combines the capital efficiency of cryptocurrencies with the regulatory trust layer of traditional finance.
$ENA is becoming the representative of this transformation.
Ethena now touches almost all major macro verticals, rather than chasing a single narrative:
Stablecoin
RWA
Perpetual contract trading and DeFi application ecosystem.
It is about the convergence of multi-billion dollar trends—stablecoin monetization, RWA tokenization, and the rise of on-chain financial infrastructure.
Below we analyze from the roadmap release and progress made thereafter: why Ethena could be the most capable protocol to capture it all.
1. Ethena's Stablecoins: The Liquidity Engine that Drives Everything.
Most protocols issue only one stablecoin, while Ethena has built an integrated stablecoin system—each asset plays a different role based on market conditions or user characteristics, all driven by the same underlying engine.
Beyond Stablecoins: How is Ethena Building the On-Chain Financial Engine?
USDe and USDtb rank among the top ten stablecoins.
USDe: The third-largest stablecoin (market cap $4.81 billion).
USDe is the synthetic dollar that opens everything.
USDe is the foundational layer of DeFi liquidity. Its supply exceeds $4.8 billion, thriving in risk-on markets—utilizing perpetual funding premiums to generate sustainable on-chain yields.
This is not just passive capital, but efficient liquidity connected to every major DeFi stack.
USDtb: The eighth-largest stablecoin (market cap $1.44 billion).
When yields decrease or volatility spikes, USDtb comes into play.
USDtb is backed by tokenized U.S. Treasury bonds supported by BlackRock's BUIDL fund, providing a risk-averse and yield-generating alternative for traditional finance (TradFi) users.
It enhances the resilience of the Ethena system, balancing the dynamic yields of USDe with treasury-level stability.
Today, both assets have entered the top ten stablecoins, and Ethena has solidified its core position in crypto liquidity.
2. sUSDe: The Engine Driving Ethena's Expansion
Stake USDe to earn sUSDe—the yield version of Ethena's synthetic dollar. Supported by protocol yields, sUSDe has become the core driver of Ethena's integration and liquidity growth.
As the market warms up, annualized yields rebound to around 8%, and sUSDe once again becomes one of the most composable and reliable sources of on-chain yield in DeFi.
Here’s how it works:
1. Pendle and Aave: Maximizing Yield and Capital Efficiency.
In Pendle and Aave, USDe/sUSDe has gradually become the preferred stablecoin for fixed income, lending, and leverage cycles:
The yields of PT USDe, PT sUSDe, and PT eUSDe consistently remain in the 9-10% range.
These PTs are also supported on Aave, enabling native DeFi fixed income strategies.
eUSDe, the version staked on Ethereal, further deepens liquidity and increases composability.
Beyond Stablecoins: How is Ethena Building the On-Chain Financial Engine?
Beyond Stablecoins: How is Ethena Building the On-Chain Financial Engine?
2. Hyperliquid x HyperEVM: New Frontiers for USDe
Ethena ventures into Hyperliquid Exchange and HyperEVM, unlocking significant distribution:
Beyond Stablecoins: How is Ethena Building the On-Chain Financial Engine?
USDe is launched on Hyperliquid, providing airdrop rewards for holders.
USDe quickly became one of the top four assets by trading volume on exchanges.
On HyperEVM, the power Curve pools for USDe and sUSDe (like feUSD/USDe) enhance anchor stability and cross-chain capabilities.
Rewards are automatically distributed through Merkl without the need for manual claims.
In short: Ethena is embedding into Hyperliquid's native liquidity layer, and Hyperliquid is the fastest-growing ecosystem.
3. TON + Telegram: The Internet Currency for a Billion Users.
What's the biggest unlock?
Through the integration of Ethena x TON, providing savings accounts for over a billion Telegram users.
USDe/tsUSDe has been launched on all major TON wallets (completion imminent).
Users can send, spend, and save USDe like Toncoin or USDT.
The mini-program allows users to earn up to 18% annualized yield (8% native yield + 10% TON bonus via the TON chain).
Rewards are seamlessly distributed on-chain through tsUSDe
Ethena is not just a DeFi application; it is becoming a native savings layer for global emerging markets and mobile-first users.
sUSDe is a scalable yield layer.
From efficient DeFi strategies (Pendle, Aave) to trading volumes on centralized exchanges (Hyperliquid) and the scale of Web2 (TON), sUSDe is driving Ethena's shift from protocol layer to monetary layer.
Clearly, Ethena has become a savings engine for millions of users. Below, we detail two milestones that will further accelerate this growth.
1. Real World Assets—Supported by Converge.
Converge is a settlement layer built specifically for digital dollars and institutional finance, co-developed by Ethena Labs and Securitize. It aims to achieve large-scale RWA tokenization by connecting regulated financial entities directly to Ethena's stablecoin infrastructure.
With Converge, TradFi can access on-chain finance at an institutional scale. And the scale is real:
Ethena and Securitize jointly manage nearly $10 billion in assets. This alone is enough to make the launch of Converge comparable to Solana's TVL.
Beyond Stablecoins: How is Ethena Building the On-Chain Financial Engine?
Key Details:
Expected to go live in Q2 2025.
Gas tokens: USDe and USDtb.
Staking/Validation: Staking sENA through the Converge Validator Network (CVN)
With increasing regulations and real-world issuances, Converge positions Ethena as a trusted backend for tokenized capital markets.
2. Ethereal: A Native Perpetual and Spot DEX Built on Ethena.
Ethereal is the first mainstream application launched on the Ethena network. It is a next-generation spot and perpetual DEX with deep liquidity and institutional-level execution.
It is fully supported by Ethena's ecosystem:
USDe and sUSDe constitute the foundational liquidity layer.
LPs earn points and yield rewards.
The execution mechanism is designed to reduce slippage and achieve order book transparency.
Currently progressing smoothly: over $1.2 billion has been pre-stored during Season Zero.
Beyond Stablecoins: How is Ethena Building the On-Chain Financial Engine?
$ENA: From Stablecoins to On-Chain Financial Innovation
$ENA that is staked is no longer just a governance tool; it is becoming key to acquiring value from the entire ecosystem that Ethena continues to expand.
With sUSDe opening new yield tracks and applications like Ethereal and Converge going live, $ENA is at the center of it all.
Beyond Stablecoins: How is Ethena Building the On-Chain Financial Engine?
Ethena's 2025 Strategy:
Product Layer → Making USDe one of the most important stablecoins in the crypto space.
Application Layer → Empowering DeFi native platforms like Ethereal
Token Layer → Simulating the flywheel effect of BNB, allowing ecological value to flow back to $ENA holders.
The strategy is advancing, and more people will soon realize it.
Beyond Stablecoins: How is Ethena Building the On-Chain Financial Engine?
Valuation Assessment:
$ENA has a market cap of approximately $2.2 billion and is still undervalued relative to its growth momentum:
Supported by over $6 billion of USDe liquidity.
Surrounded by an ever-expanding web of real-world and on-chain integrations.
Today, its valuation hinges on whether the market recognizes what Ethena is becoming.
From digital dollars to institutional rails, Ethena is building the monetary backend of crypto-native finance. If successful? $ENA is not just a token; it will become the representation of internet-native capital in the next cycle.