Ethena Labs explains the reason for the significant reduction in sUSDe APY: to ensure a slow and controlled product launch
Decentralized stablecoin project Ethena Labs explained the reason for the significant decrease in the sUSDe annual yield on the X platform. According to data disclosed by Ethena Labs, the sUSDe APY generated is 44.3%, but the sUSDe APY paid is only 15.2%. Ethena Labs stated that reducing sUSDe payments is to ensure a slow and controlled rollout of products, in case of any need during protocol development. The retained USDe will be held by the protocol and distributed to holders later. Ethena Labs stated that APY may change over time and is not guaranteed, and may be negative when there is too much leverage demand in the system to go long on cryptocurrencies. High yields are just a manifestation of capital supply and demand imbalances within the system, like any interest rate. In addition, Ethena Labs also disclosed on-chain transaction receipts to share detailed information on calculating APY with the community to ensure transparency.
Ethena accounts for nearly 5% of global Ethereum perpetual futures open interest
The Ethena protocol behind the USDe digital dollar currently accounts for nearly 5% of global Ethereum perpetual futures open interest contracts. USDe is a token pegged to the value of the US dollar, which can provide high returns. Although it is described as a stablecoin, the team avoids using this term and instead explains it as a "synthetic dollar." George Calle, Vice President of Research at TheBlock, emphasized that Ethena's USDe is essentially a tokenized representation of cash and arbitrage that exists in the crypto market. Therefore, it generates returns by shorting Ethereum futures and staking Ether. According to CoinGecko data, the project's advertised yield of up to 27% has so far attracted users to mint approximately $420 million worth of USDe tokens.
Ethena has reached the deposit limit again since announcing yesterday the opening of a USDe deposit pool with a limit of 50 million US dollars.
According to information on the official website of USDe developer Ethena Labs, Ethena announced the opening of a $50 million USDe deposit pool yesterday and has once again reached the deposit limit. The current Ethena protocol TVL has reached $342 million.
Ethena Labs opens new USDe deposit pool
Decentralized stablecoin issuer Ethena Labs announced the opening of a new USDe deposit pool with a limit of $50 million.
