Originally published on: November 15, 2024
Ethena Foundation has taken a significant step towards enhancing its decentralized finance (DeFi) protocol by approving Wintermute’s proposal to share a portion of its revenues with ENA token stakers. This decision was made following Wintermute’s governance forum’s suggestion to allocate fee revenue to ENA token stakers.
The Risk Committee confirmed the approval of the proposal to enable an ENA fee switch on November 15, much to the delight of the Ethena Foundation. This move aims to provide more value to ENA token holders and align their interests with the growth of the protocol.
Earlier this year, Ethena Labs introduced USDe, an interest-earning stablecoin that has quickly gained popularity in the crypto space. Users can mint USDe against various tokens, including Bitcoin and Ether, among others. The stablecoin’s circulating supply has surged to nearly $3.2 billion since its launch, indicating strong market demand.
With Wintermute’s acceptance of USDe as collateral for spot crypto and derivatives trades, the stablecoin has joined a prestigious list of accepted crypto collaterals. This development opens up new opportunities for Wintermute’s clients to utilize USDe in different trading instruments, including options, credit default swaps, and spot trading.
Wintermute’s governance proposal highlights the need to establish a clear value accrual mechanism for sENA, Ethena’s native token. By sharing revenues with tokenholders, Ethena aims to bridge the gap between protocol growth and token holder benefits.
As the DeFi ecosystem continues to evolve, initiatives like fee-sharing for tokenholders play a crucial role in fostering community engagement and incentivizing long-term participation. Stay tuned for more updates on Ethena’s ENA token and its innovative developments. Subscribe to our newsletter for the latest insights on DeFi trends and financial opportunities.
