- Ethena proposes adding Solana (SOL) and liquid staking derivatives as backing assets for USDe, enhancing collateral diversity.
- Ethena aims to increase USDe’s scalability with Solana integration, unlocking billions in open interest through perpetual futures.
With a plan to include Solana (SOL) as a collateral asset, Ethena Labs has made a big step in enhancing the support of its synthetic stablecoin, USDe. Under examination by the Risk Committee, the idea seeks to apply the same hedging method now applied for Bitcoin (BTC) and Ethereum (ETH) perpetual futures.
This method uses collateral in SOL to assist steady USDe’s value, offering a consistent and scalable basis for the stablecoin inside the decentralized finance (DeFi) network.
Strengthening USDe Through Solana Integration and Liquid Staking Assets
This action could release significant open interest in SOL futures, estimated at $2–3 billion, therefore strengthening the stability of USDe.
By integrating Solana, Ethena aims to diversify its collateral pool, which is now dominated by BTC and ETH. With an allocation objective of $100–200 million, or 5–10% of Solana’s open interest in the market, the first phase of this integration would comprise a slow introduction of SOL.
The staff of Ethena emphasizes the advantages of this approach, which include better liquidity in comparison to BTC and ETH futures and more reasonable financing costs.
Apart from SOL, the proposal covers liquid staking variants such as BNSOL (Binance Liquid Staked SOL) and bbSOL (Bybit Liquid Staked SOL), projected to account for a third of the whole SOL allocation.
This fits Ethena’s current approach for ETH liquid staked tokens (LSTs), which have grown to be a necessary component of the collateral system of the protocol. Ethena wants to use these assets to leverage Solana’s growing DeFi ecosystem and build a more strong and diversified support system for USDe.
This development reflects Ethena’s previous August launch of USDe on Solana using the LayerZero protocol, therefore attesting to its continuous dedication to extend cross-chain capability and raise the utility of the stablecoin.
On the other hand, CNF reported that Ethereal Exchange has suggested working with Ethena to increase USDe acceptance.
Aiming to match centralized exchange performance while keeping an emphasis on self-custody with a transaction capacity of one million per second, Ethereal intends to deliver a 15% token allocation to ENA holders when accepted. This possible alliance emphasizes Ethena’s initiatives to confirm its presence in the cutthroat stablecoin scene.
As we previously noted, Ethena has also chosen Coinbase Prime for custody services, including USDC and self-custodial wallet features to expedite processes. The protocol seeks to increase the general user experience by including Coinbase Prime Web3 Wallet, optimizing the efficiency of its minting and redeeming systems.
Meanwhile, Ethena’s native token, ENA, is trading at $0.4211 at the time of writing; it has jumped 9.11% over the last 24 hours, ranking among the top five gainers on the market today.
