Ethena Labs has announced the launch of its stablecoin, USDe, on the Solana network as of August 7.
Ethena Labs has announced the launch of its stablecoin, USDe, on the Solana network as of August 7. This move allows borrowers to use Solana (SOL) as collateral for USDe loans, pending approval from Ethena (ENA) token holders. USDe is now integrated with several Solana applications, including Kamino Finance, Orca, Drift Protocol, and will soon be available on Jito.
This integration expands USDe's reach within the Solana ecosystem, offering users the ability to earn Ethena Sats. These can be exchanged for ENA at the end of each campaign by providing USDe liquidity to the integrated exchanges or using it as collateral for margin trades.
Previously, USDe was available only on Ethereum, with loans backed by Ethereum (ETH) or Bitcoin (BTC) as collateral. The stablecoin aims to maintain a peg to the US dollar, and generates yield from Lido Staked Ethereum (stETH) and short positions in the Ethereum perpetual futures market. Ethereum staking rewards and negative funding rates on its short positions allows it to maintain a high yield compared to other stablecoins.
A vote is anticipated next week to decide if SOL will be accepted as collateral for USDe loans. Ethena may not enter short SOL perpetual positions immediately following the launch, as SOL futures started trading later compared to ETH, and have less historical data on funding rates.
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