Ethena Labs Adds Bitcoin Backup for Synthetic Dollar 🚀

Revolutionizing Crypto Stablecoins with Bitcoin Backing

Are you ready for a groundbreaking development in the world of stablecoins? Ethena Labs, the developer behind the USDe stablecoin, has recently announced a significant update that could change the game. By adding Bitcoin (BTC) as a backing asset for USDe, Ethena Labs is unlocking a new level of scalability for its flagship product.

Bitcoin Backing Unlocks Scalability

Ethena Labs recently shared on X that using Bitcoin to back USDe is a vital step in scaling the stablecoin beyond its current $2 billion supply.

Achieving Censorship-Resistant Stability

USDe is designed to be a censorship-resistant stablecoin, maintaining its backing on-chain through delta-hedging staked Ethereum (ETH) collateral, known as the “Internet Bond.”

“The ‘Internet Bond’ leverages yield from staked Ethereum and funding from perpetual and futures markets to create an on-chain crypto-native ‘bond’ that acts as a dollar-denominated savings tool for users in authorized jurisdictions,”

Bitcoin vs. Ethereum: Why Bitcoin Makes Sense

Ethena Labs favors Bitcoin over Ethereum for backing USDe due to Bitcoin’s liquidity and open interest on exchanges, making it ideal for scaling the stablecoin.

“Bitcoin’s open interest on major exchanges has grown significantly, offering better scalability and liquidity for delta hedging compared to Ethereum. While Bitcoin lacks native staking yield, its growth in derivative markets and favorable market conditions make it an optimal choice for USDe scalability,”

Live Dashboard Reflects BTC Backing

Ethena Labs’ decision to back USDe with Bitcoin is now visible on its live dashboard, demonstrating the integration of Bitcoin into the stablecoin’s ecosystem.

Hot Take: Embracing Bitcoin for Stablecoin Success

Get ready to witness a new chapter in stablecoin innovation as Ethena Labs integrates Bitcoin into USDe, paving the way for unprecedented scalability and stability in the crypto space. The move not only showcases the potential of Bitcoin as a backing asset but also highlights the evolution of stablecoin technology to meet the demands of a rapidly growing market.