Ethena Introduces Stablecoin to Stabilize USDe During Market Downturns
Ethena, a rapidly growing decentralized finance (DeFi) platform, announced on Monday the launch of a new stablecoin, USDtb, designed to stabilize its flagship USDe token during bearish crypto market conditions.
USDtb aims to maintain a steady $1 value and is backed by 90% reserves in BUIDL, a tokenized money market fund issued by BlackRock in collaboration with Securitize.
“In response to surging demand for diverse stablecoin options, we identified a unique opportunity to introduce a product offering a distinct risk profile from USDe while keeping users within our trusted ecosystem,” said Ethena founder Guy Young.
Ethena’s Growing DeFi Ecosystem
Since its public launch in early 2024, Ethena has attracted nearly $6 billion in user funds, making it one of the fastest-growing DeFi protocols. Its flagship token, USDe, marketed as a “synthetic dollar,” maintains a $1 peg while delivering high yields—currently at an annualized 27%—by shorting bitcoin (BTC), ether (ETH), and solana (SOL) perpetual swaps and farming funding rates. However, during bearish market phases, USDe’s yield generation can become unprofitable due to persistent negative funding rates.
To address this challenge, the newly introduced USDtb stablecoin will allow Ethena to temporarily close the derivatives positions backing USDe and redirect assets into USDtb during downturns, mitigating risks. Ethena also plans to seek USDtb’s acceptance as collateral for margin trading on centralized exchanges.
Industry Support and Collaborations
For USDtb, Ethena has partnered with leading custodians, including Copper, Zodia Custody, Komainu, and Coinbase Institutional. Liquidity providers for the stablecoin include Jump, Cumberland, Amber Group, GSR Markets, and SCB Limited.
Ethena has also applied to Sky’s (formerly MakerDAO) Tokenization Grand Prix program, which seeks to allocate up to $1 billion toward real-world asset (RWA) tokenization initiatives.
ENA Token Rally
The protocol’s governance token, ENA, gained significant attention over the weekend after World Liberty Financial, a DeFi initiative linked to President-elect Donald Trump, invested $500,000 in the token. Blockchain data revealed the purchase on Saturday, which sparked a 25% rally in ENA before some of the gains were pared on Monday.
A Growing Role in the Stablecoin Market
Ethena’s latest stablecoin innovation reflects its broader strategy to provide users with robust financial tools tailored to fluctuating market conditions. With the addition of USDtb, the protocol continues to expand its offerings, positioning itself as a key player in the evolving DeFi landscape.
