Ethena’s USDe: A New Contender
Ethena’s USDe stablecoin is making waves in the crypto world. Unlike traditional stablecoins like USDT and USDC, which are backed by fiat currency, USDe is a “synthetic dollar” backed by a mix of assets, including staked ETH derivatives and short positions.
Partnership with Bybit
Ethena has recently partnered with Bybit, a major crypto exchange. This partnership allows traders to earn a yield on USDe, use it as collateral for futures trading, and trade it in spot pairs without paying fees.
A Threat to USDT and USDC?
Some analysts believe that this partnership is a direct challenge to the dominance of USDT and USDC. They point out that the yield offered by USDe could entice traders away from the more established stablecoins.
Concerns about Sustainability
However, there are concerns about the sustainability of USDe’s high yield. Critics argue that the model is unsustainable and that the $10 million Reserve Fund may not be enough to prevent a depeg if yields fall.
Market Dominance
Currently, USDT remains the third most valuable cryptocurrency, with a market cap of over $111 billion. USDe, on the other hand, has a TVL of over $2.5 billion. While it’s too early to say if USDe will dethrone USDT, the partnership with Bybit is a significant step in its journey.
