Community behind the synthetic dollar on EthereumETH) is proposing adding a top ETH rival to its reserve assets for its stablecoin.
The new Ethena.ENA( ) Community proposalSolana is being considered by the community (SOL() is used as the reserve asset of USDe, a stablecoin pegged to US dollars.
The proposal suggests that USDe backing be given to SOL, using a similar mechanism as Ethena’s hedging system currently used with BTC and ETH permanent futures.
In consultation with the Risk Committee and considering SOL’s shorter trading history, lower liquidity, as well historical funding rates data, it is proposed that this allocation be gradually scaled up.”
To the USDe reserve pool, it would be possible to add other liquid-staked SOL variants such as Binance Liquid Staked SOL and Bybit Liquid Staked SOL.
The proposal also aims at unlocking billions of open interest.
“In addition to potentially increasing protocol revenue via SOL funding rates, this will unlock $2-3 billion in additional open interest – allowing Ethena to continue scaling USDe from its current supply of approximately $2.5 billion and keep pace with any potential increase in market demand.”
ENA currently trades at $0.419, an increase of 18.5% over the past 24 hours.
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