Originally published on: November 15, 2024
Ethena Foundation has given the green light to Wintermute’s proposal to distribute a portion of the decentralized finance (DeFi) protocol’s earnings to tokenholders. This move, as outlined in Wintermute’s governance forum, aims to benefit stakeholders of ENA, Ethena’s native token.
Wintermute, a prominent cryptocurrency market maker, put forth the proposal on Nov. 6 to allocate a share of Ethena’s fee revenue to stakers of ENA. With ENA currently valued at $0.5437, this decision marks a significant step towards enhancing the token’s value proposition.
In an official statement on the governance forum on Nov. 15, the Ethena Foundation expressed its approval of the proposal to activate an ENA fee switch. This development signifies a strategic move to align the interests of tokenholders with the protocol’s growth and revenue generation.
Notably, Wintermute’s governance proposal sheds light on the evolution of Ethena’s ecosystem, particularly concerning the launch of USDe, an interest-earning stablecoin introduced by Ethena Labs earlier this year. USDe has rapidly gained traction, with its circulating supply reaching nearly $3.2 billion since its launch in February.
Furthermore, the integration of USDe as collateral for crypto and derivatives trading by Wintermute reinforces the utility and versatility of this stablecoin within the DeFi space. Clients can now leverage USDe for options, credit default swaps, forward contracts, and spot trading on the X platform, alongside other conventional collateral assets like BTC, ETH, Solana, and USD Coin.
This collaborative effort between Ethena and Wintermute not only enhances the value proposition of ENA but also underscores the ongoing innovation and evolution of DeFi protocols. With a focus on revenue-sharing and aligning tokenholder interests with the protocol’s growth, this strategic partnership sets a new precedent in the DeFi landscape.
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