USDe issuer Ethena Labs has added Solana (SOL) as collateral for the “synthetic dollar”. Previously, users could only deposit Bitcoin, Ethereum, stETH, or USDT into the protocol to issue the stablecoin. According to the team, the integration with the Solana cryptocurrency blockchain will expand the USDe audience. Thanks to the integration, users can buy and sell the asset on this network. According to the developers, since the addition of Bitcoin as collateral, the capitalization of the “synthetic dollar” has grown by more than $ 1 billion.
The collateral assets are used to open equivalent short positions on perpetual contracts. Due to the rewards received from long holders in the form of funding rates, Ethena Labs is able to offer an attractive yield of 12.3% per annum in USDe. The stablecoin architecture is based on the delta-neutral trading and portfolio management strategy that has become popular in TradFi. The strategy is a variation of Cash-and-Carry trading and is considered safe in favorable conditions
According to the issuer, as of May 24, the USDe collateral level was 101.74%. In other words, the asset can be redeemed if each user decides to liquidate it. On August 5, in turbulent conditions, the volume of the “synthetic dollar” buyback by its issuer Ethena Labs exceeded $100 million. Ethena Labs founder then assured that each stress test like this one and others they have gone through this year provide additional guarantees of the system’s stability.
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