Ethena Labs Introduces USDe Stablecoin to the Solana Network

On Wednesday, Ethena (ENA) introduced USDe, a stablecoin valued at dollars, to the Solana network. This enables users to access and transact with USDe while utilizing other services within the SOL ecosystem.

Stablecoin USDe, valued at dollars, has been introduced to the Solana network by Ethena (ENA) on Wednesday. This enables users to access and transact with USDe while utilizing other services within the SOL ecosystem.

Following the news, SOL and Ethena (ENA) are down 1.3% and 6%, respectively.

The release from Ethena Labs, which was made public on August 7, highlights how USDe has been integrated into Solana’s DeFi ecosystem. In order to earn Ethena Sats, which can be converted for ENA tokens at the conclusion of each campaign, users may either supply liquidity to these platforms or utilize USDe as collateral for margin trades.

USDe is live on Solana as of today, August 7th

Read below for a list of our app integrations with USDe and sUSDe

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Next week, a vote is anticipated to determine whether Solana (SOL) may be used as security for USDe loans. Owing to the limited historical data on SOL financing rates relative to Ethereum (ETH), Ethena Labs intends to gradually offer SOL short positions.

Supporters of the USDe point to its high and relatively safe yield, while detractors doubt its long-term sustainability. Guy Young, the founder of Ethena Labs, has defended the currency, stating that its yield is derived from reliable sources and is “publicly verifiable.”

With the aim of expanding market access and increasing liquidity, Ethena has integrated USDe’s staked version, sUSDe, to enable users to collect rewards. Users can borrow PYUSD on Kamino Finance to leverage their holdings in USDe and sUSDe. Moreover, the Drift protocol will provide users with opportunities to generate yield using USDe and sUSDe when trading perpetually.

Solana (SOL) might be used as an underlying asset for the USDe stablecoin, according to Ethena Labs. The move, which could increase USDe's scalability by adding $2–3 billion in open interest across major exchanges, must be approved by governance.

Bulls continue to push SOL price up

Shortly after the dip, Solana was able to turn things around, and now the bulls are attempting to drive the price back up to $170, demonstrating their tenacity. The bulls are regrouping and able to maintain the upswing thanks to the solid support level of around $127. A rally might be initiated if the price breaks above the moving averages, which could push the price up to the $188 barrier level.

Solana price 1 day

However, if the bears take back the initiative, the price of Solana may drop below the neckline of the pattern. There is currently opposition from the moving averages at the neckline, indicating that the bulls may retake the upper hand.

Based on the daily time frame chart, the price of Solana expanded the down leg to $109 in a candle wick on Monday. The sell-off came after an initial decline from the top of $193 in July, which was also the time that Bitcoin was rejected at $70,000.

Unexpected liquidations exacerbated the technical structure in the futures market, boosting sellers and stifling bulls. But the swift bounce over $120 called on investors who purchased the drop, again boosting the SOL price.

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