Ethena Labs has announced the integration of its platform with centralized exchange wallets on Binance, Bybit, OKX, and Bitget
Ethena Labs has announced the integration of its platform with centralized exchange wallets on Binance, Bybit, OKX, and Bitget. The integration enables users who lock their Ethena (ENA) USDe stablecoins for at least 7 days through exchange Web3 wallets to receive a 20% reward boost. These incentives, referred to as "Ethena sats," can be converted to the protocol's native ENA token at the end of each campaign.
To earn sats, users must deposit Ethena USDe stablecoins into their exchange wallets, connect to the Ethena decentralized finance (DeFi) protocol, and stake their holdings. At present, the protocol has a total value locked (TVL) of $2.27 billion, generating an annualized revenue of $178 million.
Ethena’s USDe stablecoin has skyrocketed to become the fifth-largest stablecoin just months after launching, due to the high initial annual percentage yield (APY) of 67% offered. Currently, the protocol provides an APY of 24% on its stablecoins. However, the high yield has drawn concerns, with renowned Fantom developer Andre Cronje questioning the sustainability of its mechanism.
Guy Young, the founder of Ethena Labs, dismissed comparisons to the failed Terra stablecoin. Young highlighted that Ethena's verifiable yields are derived from a combination of Ethereum consensus layer inflation rewards, execution fees paid to Ether stakers, maximal extractable value fee captures acquired by Ether stakers, and trading income provided by Ethena Labs.
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