What is Ethena?
Ethena is a synthetic dollar protocol built on Ethereum that provides a crypto-native alternative to traditional stablecoins. Instead of direct fiat reserves, Ethena relies on a combination of crypto assets and futures strategies to stabilize the value of its stablecoin (USDe).
The ENA token functions as the governance and utility token within the ecosystem.
How does Ethena work?
The core of the protocol is the creation of the synthetic dollar USDe, which is backed by crypto assets combined with opposite positions in futures contracts.
This so-called delta-hedging strategy allows the protocol to offset price fluctuations and maintain a stable value for USDe.
Users can also convert USDe into sUSDe, an interest-bearing version that generates yield from protocol revenues.
The token
Abbreviation: ENA
Category: Governance / Utility token within DeFi
Blockchain: Ethereum
Protocol: Delta-hedging synthetic stablecoin protocol
Year of launch: 2024
The technology behind Ethena
Ethena relies on smart contracts and price oracles to continuously rebalance its positions. This ensures the protocol remains delta-neutral and resilient against market volatility.
Part of the collateral consists of liquid stablecoins such as USDC and USDT, which serve as a buffer.
The infrastructure is fully composable within DeFi, allowing USDe and ENA to integrate seamlessly with other protocols.
The Ethena ecosystem
The ecosystem is built around three main components:
- USDe: the synthetic dollar
- sUSDe: the interest-bearing version of USDe
- ENA: the governance and utility token
Users can mint, stake, and deploy USDe across DeFi platforms. ENA holders participate in governance by voting on key parameters such as collateral types and protocol settings.
A “fee switch” mechanism may also share revenues with ENA holders once specific conditions are met.
Who is the founder of Ethena?
The official documentation and website do not mention a specific founder. Ethena is presented as a project created by a team with backgrounds in both traditional finance and crypto, without highlighting individual names.
Impact on the environment
Click here to read more information about the environmental impact of this coin.
Risk disclaimer
Please note: for more information about this crypto asset, you can consult the official documentation via Ethena Docs.
Before trading, always read the general risk warnings on crypto trading:
Cryptocurrencies, including Ethena (ENA), are volatile and involve risks. The value of ENA can fluctuate significantly, and investments may result in financial losses. Always do your own research and only invest money you are prepared to lose.
The BTC Direct disclaimer van be found here: https://btcdirect.eu/de-at/disclaimer