Originally published on: November 15, 2024
Ethena Foundation recently approved Wintermute’s proposal to share a part of the decentralized finance protocol’s revenues with tokenholders. This decision aims to benefit stakers of ENAENA, Ethena’s native token, by allocating a portion of the fee revenue to them.
Wintermute, a renowned cryptocurrency market maker, put forth this proposal on Nov. 6, which was later approved by the Risk Committee. This move enables an exciting development for ENAENA holders, allowing them to potentially benefit from the protocol’s revenue streams.
In a related development, Ethena Labs introduced USDe, an interest-earning stablecoin, earlier this year. Users can mint USDe against various tokens like BitcoinBTC, EtherETH, liquid staking derivatives, and other stablecoins. Ethena Labs hedges against the portfolio’s volatility using offchain financial derivatives, making USDe a unique addition to the stablecoin ecosystem.
Since its launch in February, USDe’s circulating supply has surged to nearly $3.2 billion, showcasing its growing popularity among users. Ethena’s ENA token, which can be staked for sENA, lacked a clear value accrual mechanism until Wintermute’s governance proposal was implemented.
Wintermute’s initiative to accept USDe as collateral for spot crypto and derivatives trades further enhances the token’s utility. Clients can now leverage USDe as collateral for options, credit default swaps, forward, and spot trading on the X platform. This addition expands Wintermute’s existing roster of accepted crypto collateral, which includes BTC, ETH, SolanaSOL, and USD CoinUSDC.
The collaboration between Ethena Foundation and Wintermute signifies a strong commitment to innovation and creating value for tokenholders. With a clear focus on revenue sharing and enhancing token utility, this partnership sets a new standard in the DeFi landscape.
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