Ethena Labs\' USDe Token Can Now Be Used as Collateral for Trading Perpetual Futures on the Bitget Derivatives Exchange

The integration allows users to earn a yield on their collateral, which will be distributed by Bitget.

Ethena’s USDe token can now be used as collateral for trading perpetual futures on the Bitget derivatives exchange. The integration will also allow users to earn a yield on their collateral, which will be distributed by Bitget.

Furthermore, Bitget will be offering USDe as a savings product within its “Earn” program and integrating USDe into its spot order book pairs.

“If traders use stablecoins instead of USDe for trading any derivative product, they lose substantial value,” said Guy Young, Founder of Ethena Labs. “Our goal is to ensure that no trader has to forgo that value any longer.” The value proposition of USDe lies in its ability to offer yield based on both staking rewards and a delta-neutral trading position.

However, the USDe token carries some risks beyond those associated with traditional stablecoins. The token is backed by a delta-neutral position that balances a basket of staked ether derivatives with ether shorts on centralized exchanges. This setup generates a yield as long as funding rates remain positive, which has historically been the case.

The primary risk to USDe is if funding rates were to turn negative for an extended period, reducing the yield to zero or depleting its assets. Other risks include custodial counterparty risks associated with holding assets on centralized exchanges.

Back in February, Ethena Labs, the creator behind the Ethereum-based stablecoin USDe, raised $14 million.

The investment was co-led by Dragonfly and BitMEX founder Arthur Hayes’ family office, Maelstrom, showing confidence in the project’s future.

Despite receiving over $50 million in commitments, Ethena chose to limit the round to $14 million, as they had no immediate need for additional funds, according to its founder and CEO Guy Young. The fundraising, which started in late December and wrapped up this week, was conducted via a simple agreement for future equity along with token warrants, bringing Ethena’s valuation to a robust $300 million.

After a stealthy introduction last December, USDe has already managed to amass over $224 million in total value locked (TVL). With its rapid growth, Arthur Hayes, a key backer and the founding advisor of Ethena, predicts that USDe could soon hit $1 billion in TVL, making it a competitor to the well-known stablecoin Tether.

The concept for USDe was inspired by Hayes’ “Dust on Crust” blog post, which envisioned a stablecoin backed by crypto-native derivatives and operating outside the traditional banking system.

In addition to USDe, Ethena has also introduced a dollar-denominated “Internet bond,” which is a savings instrument that generates value through the staked version of USDe (sUSDe). This product leverages staked ether yields and futures market basis to generate annualized yields ranging from 12-20% over the past two months.

Founded just last year, Ethena is now based in Lisbon, Portugal and is set to expand its team, aiming to hire quant engineers and business development executives, with a particular focus on growth in Asia.

News source：https://www.kdj.com/cryptocurrencies-news/articles/ethena-labs-usde-token-collateral-trading-perpetual-futures-bitget-derivatives-exchange.html

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