Ethena Labs Raises $14 Million in Funding Round
Ethena Labs, the developer of the Ethereum-based stablecoin USDe, has secured $14 million in a strategic funding round. Dragonfly, Brevan Howard Digital, and BitMEX founder Arthur Hayes’ family office co-led the round. Other investors included PayPal Ventures, Franklin Templeton, Fidelity via Avon Ventures, and several crypto exchanges. The round brought Ethena’s valuation to $300 million.
USDe Stablecoin: An Overview
USDe is an Ethereum-based stablecoin that achieves price stability through “delta-neutral” hedging across centralized and decentralized venues. It is backed by a long staked ether position and a short ether position, ensuring a dollar-denominated return profile. Users can deposit U.S. dollars, ETH, or liquid staking tokens as collateral to create USDe.
Ethena’s ‘Value Accruing Internet Bond’
Ethena’s second product is an Internet bond, a dollar-denominated savings instrument that provides value accrual through sUSDe. The bond captures both the inherent staked ether yield and the basis in futures markets, offering an annualized yield of 12-20%. With the new funding, Ethena plans to expand its team by hiring quant engineers and business development executives in Asia.
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