{"id":"usde","hidden":false,"ipfs":"QmXj7dyFoFmo7w6fVkPnRUPVwp2csczsCEj87Fpv6vTLpP","language":"en","transactionHash":"0xacac19aad011467b17536bf8361de82a5db61abcb1ba1fec536a53c6330b248f","created":"2024-01-18T14:30:55.389Z","updated":"2025-05-21T21:33:19.441Z","title":"Ethena USDe","summary":"Ethena USDe is a 1:1 collateralized on-chain stablecoin powered by ETH staking yield and perpetual swaps, developed by Ethena Labs to address the stablecoin trilemma.","content":"**Ethena USDe** is a fully-backed, on-chain synthetic dollar issued by the [Ethena](https://iq.wiki/wiki/ethena) protocol and managed by Ethena Labs and the Ethena Foundation. It uses delta‑hedged crypto [collateral](https://iq.wiki/wiki/collateral), combining [ETH](https://iq.wiki/wiki/ether-eth) [staking](https://iq.wiki/wiki/staking) yield and derivatives such as perpetual swaps to maintain a value close to 1 USD. USDe has a staked, yield‑bearing variant called sUSDe, and together they have grown to a multibillion‑dollar supply, placing USDe among the larger on‑chain dollar [stablecoins](https://iq.wiki/wiki/stablecoin).[\\[1\\]](#cite-id-ysfyl5iowth)​[\\[7\\]](#cite-id-94uey0apye)​\n\n[YOUTUBE@VID](FW58LEP9uFk)\n\n## Overview\n\nUSDe is designed as a fully‑backed synthetic dollar that aims to track the value of USD by holding crypto [collateral](https://iq.wiki/wiki/collateral) and hedging that [collateral](https://iq.wiki/wiki/collateral) with derivatives to achieve a delta‑neutral position. The protocol initially focused on [liquid staking tokens](https://iq.wiki/wiki/liquid-staking) (LSTs) such as [stETH](https://iq.wiki/wiki/lido-staked-ethereum-steth), backing USDe 1:1 with these assets while shorting an equivalent notional amount of [ETH](https://iq.wiki/wiki/ethereum) on perpetual futures venues.[\\[1\\]](#cite-id-ysfyl5iowth)​[\\[2\\]](#cite-id-iqjr28p7k6)​\n\nUSDe is intended to address the “[stablecoin](https://iq.wiki/wiki/stablecoin) trilemma”, which posits that a [stablecoin](https://iq.wiki/wiki/stablecoin) cannot simultaneously maintain a peg to its reference asset, remain decentralized, and scale significantly. According to [Ethena](https://iq.wiki/wiki/ethena) founder [Guy Young](https://iq.wiki/wiki/guy-young), the protocol’s goal is to create a crypto‑native, scalable dollar instrument that does not rely on traditional banking infrastructure while keeping the base system as simple and robust as possible.[\\[2\\]](#cite-id-iqjr28p7k6)​\n\nUsers can acquire USDe through permissionless external [liquidity pools](https://iq.wiki/wiki/liquidity-pool) and centralized exchanges, while approved market‑making entities from permitted jurisdictions, who pass [KYC](https://iq.wiki/wiki/know-your-customer-kyc)/KYB screening, can mint and redeem USDe directly with [Ethena](https://iq.wiki/wiki/ethena) contracts. Collateral is held with off‑exchange custodians and onchain custody solutions, and USDe is intended to be fully backed by users’ deposits at all times. [Arbitrage](https://iq.wiki/wiki/arbitrage) between protocol minting/redemption and secondary markets such as [Binance](https://iq.wiki/wiki/binance) and [Curve](https://iq.wiki/wiki/curve-finance) helps keep USDe trading close to its target price.[\\[1\\]](#cite-id-ysfyl5iowth)​\n\n## History\n\nUSDe’s supply peaked above $12 billion before contracting in April 2026 during an incident linked to concentrated positions in rsETH, a restaked or [liquid staking](https://iq.wiki/wiki/liquid-staking) token asset, which contributed to redemptions, a temporary contraction in USDe supply, and subsequent rebalancing and diversification of [collateral](https://iq.wiki/wiki/collateral) exposures. Following adjustments and diversification of backing assets, [Ethena](https://iq.wiki/wiki/ethena) reported that USDe’s supply had recovered to approximately $4.5 billion by the end of May 2026 and remained broadly stable around $4.46 billion in June 2026, with the protocol targeting a more normalized supply range of roughly $4–4.5 billion.[\\[8\\]](#cite-id-hbo80e6izp)​[\\[7\\]](#cite-id-94uey0apye)​[\\[9\\]](#cite-id-0tal9o4va6)​\n\n## Design and Mechanism\n\n​[Ethena](https://iq.wiki/wiki/ethena)’s design combines crypto‑native [collateral](https://iq.wiki/wiki/collateral), off‑exchange and onchain custody, and derivatives hedging to create a synthetic dollar that seeks to be fully backed and largely insulated from underlying asset price volatility. Over time, the backing mix has expanded from ETH [liquid staking](https://iq.wiki/wiki/liquid-staking) tokens to include cash‑like liquid [stablecoins](https://iq.wiki/wiki/stablecoin), BTC and ETH basis trading positions, tokenized real‑world assets such as AAA‑rated collateralized loan obligation (CLO) tokens JAAA and STAC, and other yield‑bearing positions that meet [Ethena](https://iq.wiki/wiki/ethena)’s risk criteria.[\\[1\\]](#cite-id-ysfyl5iowth)​[\\[8\\]](#cite-id-hbo80e6izp)​[\\[10\\]](#cite-id-6cx2a5iyi0)​\n\nEthena allocates a significant share of backing assets to DeFi lending markets and structured products on platforms such as [Aave](https://iq.wiki/wiki/aave), [Morpho](https://iq.wiki/wiki/morpho), Kamino, [Jupiter](https://iq.wiki/wiki/jupiter) Lend, and Pendle, alongside derivatives positions on centralized venues and onchain perps. This diversified approach is intended to balance yield generation with risk management while preserving the protocol’s delta‑neutral mandate.[\\[8\\]](#cite-id-hbo80e6izp)​[\\[7\\]](#cite-id-94uey0apye)​\n\n## Tokenomics and Distribution\n\nUSDe is a synthetic dollar token designed to track USD, while sUSDe is a staked, yield‑bearing version that represents a claim on USDe deposited into the protocol’s yield strategies. Yield generated from the backing portfolio—through derivatives funding and basis spreads, rewards on cash‑like stable assets, and [staking](https://iq.wiki/wiki/staking) rewards—is primarily distributed to sUSDe holders, whereas unstaked USDe used as liquidity or [collateral](https://iq.wiki/wiki/collateral) generally does not receive protocol yield directly.[\\[1\\]](#cite-id-ysfyl5iowth)​\n\nWhitelisted market‑making entities that pass KYC/KYB checks can mint and redeem USDe directly with [Ethena](https://iq.wiki/wiki/ethena) contracts by depositing or withdrawing supported [stablecoins](https://iq.wiki/wiki/stablecoin) such as USDT, [USDC](https://iq.wiki/wiki/usdc), or [USDtb](https://iq.wiki/wiki/usdtb), while other users primarily access USDe through secondary markets on centralized exchanges and DeFi [liquidity pools](https://iq.wiki/wiki/liquidity-pool).[\\[1\\]](#cite-id-ysfyl5iowth) Minting and redemption activity is subject to [slippage](https://iq.wiki/wiki/slippage) and execution or [gas](https://iq.wiki/wiki/gas) costs, but these costs accrue to trading venues and network [validators](https://iq.wiki/wiki/validator) rather than as protocol profit for Ethena.[\\[1\\]](#cite-id-ysfyl5iowth) Large net redemptions reduce the outstanding USDe supply and trigger adjustments to the underlying [collateral](https://iq.wiki/wiki/collateral) mix and hedge positions, while [arbitrage](https://iq.wiki/wiki/arbitrage) between primary and secondary markets is intended to keep USDe trading close to $1.[\\[8\\]](#cite-id-hbo80e6izp)​\n\nFollowing its February 2024 launch, USDe’s supply expanded rapidly to a peak above $12 billion before contracting and stabilizing in the mid‑single‑digit billions by mid‑2026; governance reports in May and June 2026 cite supply levels around $4–4.5 billion and a [staking](https://iq.wiki/wiki/staking) ratio for sUSDe in the vicinity of 40% of total USDe outstanding.[\\[8\\]](#cite-id-hbo80e6izp)​[\\[7\\]](#cite-id-94uey0apye) [Ethena](https://iq.wiki/wiki/ethena) has also introduced white‑label [stablecoin](https://iq.wiki/wiki/stablecoin) products such as [USDtb](https://iq.wiki/wiki/usdtb) and jupUSD, which use USDe‑related strategies and collateral structures as their backing while being distributed through specific partner platforms.[\\[8\\]](#cite-id-hbo80e6izp)​\n\n## Governance\n\nProtocol governance and risk management for USDe are overseen by the [Ethena](https://iq.wiki/wiki/ethena) [Foundation](https://iq.wiki/wiki/foundation), supported by a Risk Committee that evaluates [collateral](https://iq.wiki/wiki/collateral) types, venue exposures, and new integrations. Governance processes increasingly involve community and committee review of proposals related to reserve diversification, backing asset limits, and deployment of USDe‑related strategies on new platforms.[\\[8\\]](#cite-id-hbo80e6izp)​\n\nThe [Ethena](https://iq.wiki/wiki/ethena) [Foundation](https://iq.wiki/wiki/foundation) publishes regular monthly governance updates that detail backing composition, [collateral](https://iq.wiki/wiki/collateral) and hedge allocations, [Reserve](https://iq.wiki/wiki/reserve) Fund levels, and changes to risk parameters. These reports are accompanied by proof‑of‑reserves attestations and custodian attestations intended to demonstrate that USDe is fully backed and that collateral is held with approved custodians across centralized and decentralized venues.[\\[7\\]](#cite-id-94uey0apye)​[\\[1\\]](#cite-id-ysfyl5iowth)​\n\n## Regulation\n\n​[Ethena](https://iq.wiki/wiki/ethena) and USDe operate within an evolving regulatory environment for [stablecoins](https://iq.wiki/wiki/stablecoin) and synthetic dollar instruments. USDe’s design—relying on crypto [collateral](https://iq.wiki/wiki/collateral), derivatives hedging, and yield‑bearing structures—differs from traditional fiat‑backed [stablecoins](https://iq.wiki/wiki/stablecoin) that hold primarily cash and short‑term government securities.[\\[1\\]](#cite-id-ysfyl5iowth)​\n\nIn June 2026, the German financial regulator BaFin applied the EU’s Markets in Crypto‑Assets Regulation ([MiCA](https://iq.wiki/wiki/mica)) to USDe and barred its offering to users in the European Economic Area through regulated venues. BaFin stated that USDe’s synthetic, yield‑bearing structure does not meet [MiCA](https://iq.wiki/wiki/mica)’s requirement for asset‑referenced tokens to be backed 1:1 by cash and high‑quality liquid assets such as short‑term government bonds, and raised questions about whether yield‑bearing variants could resemble investment products.[\\[9\\]](#cite-id-0tal9o4va6)​\n\nThe onchain [Ethena](https://iq.wiki/wiki/ethena) protocol has continued to operate globally, and the BaFin action has primarily affected regulated distribution and marketing of USDe within the EU rather than non‑EU or purely onchain access. Ethena has indicated that it will continue to adapt to jurisdiction‑specific regulations while maintaining USDe’s core design as a crypto‑backed synthetic dollar.[\\[9\\]](#cite-id-0tal9o4va6)​\n\n## Partnerships\n\n​[Ethena](https://iq.wiki/wiki/ethena) has pursued a broad set of integrations with trading venues, [blockchains](https://iq.wiki/wiki/blockchain), DeFi protocols, and institutional partners to expand USDe’s usage. On the derivatives side, USDe is integrated with the [Hyperliquid](https://iq.wiki/wiki/hyperliquid) perpetual DEX and HyperEVM, where it can be used for trading, borrowing, and liquidity provision, and it is deeply integrated on [Binance](https://iq.wiki/wiki/binance) for spot markets, derivatives [collateral](https://iq.wiki/wiki/collateral), and yield products.[\\[5\\]](#cite-id-Hcy7id9UYk)​[\\[6\\]](#cite-id-xfzuyWcfwv)​[\\[7\\]](#cite-id-94uey0apye)​\n\nUSDe and sUSDe have been deployed across multiple chains and DeFi platforms, including tsUSDe on the TON [blockchain](https://iq.wiki/wiki/blockchain) for Telegram‑based wallets, a TON‑native wrapped representation of USDe that brings USDe and sUSDe into the TON and Telegram wallet ecosystem, and [Solana](https://iq.wiki/wiki/solana)‑based integrations via Kamino and [Jupiter](https://iq.wiki/wiki/jupiter) Lend, where USDe and related assets are used in lending and yield strategies. Additional integrations include money markets and structured products on [Aave](https://iq.wiki/wiki/aave), [Morpho](https://iq.wiki/wiki/morpho), and Pendle, as well as participation in the [Avalanche](https://iq.wiki/wiki/avalanche) Payments Collective to explore payment‑focused use cases.[\\[5\\]](#cite-id-Hcy7id9UYk)​[\\[8\\]](#cite-id-hbo80e6izp)​\n\n​[Ethena](https://iq.wiki/wiki/ethena)’s governance updates also highlight institutional partnerships, including [Coinbase](https://iq.wiki/wiki/coinbase) (for custody, derivatives venue access, and a joint high‑yield vault), BlackRock (via USDe’s inclusion in the Aladdin platform), Robinhood (using USDe as primary [collateral](https://iq.wiki/wiki/collateral) in certain crypto earn products), Janus Henderson (through a CLO fund integration and USDe treasury allocation), Anchorage, Mercado [Bitcoin](https://iq.wiki/wiki/bitcoin) in Brazil (for distribution), and the FalconX warehouse lending facility, which provides [leverage](https://iq.wiki/wiki/leverage) secured by USDe‑related positions.[\\[8\\]](#cite-id-hbo80e6izp)​[\\[10\\]](#cite-id-6cx2a5iyi0)​\n","recentActivity":null,"operator":{"id":"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138"},"categories":[{"id":"cryptoassets","title":"Cryptoassets"}],"tags":[{"id":"Stablecoin"},{"id":"Ethereum"}],"images":[{"id":"QmVMh8RqYGNwmbsxkEwb3n6NUkh4Qc4EBVS1TvLTmLxT3j","type":"image/jpeg, image/png"}],"media":[{"name":"Screenshot 2024-01-18 143809.png","id":"QmajF5pviipUrTTyz6zJCEV9MEj8wZ8appwWK5VbvSCRob","size":"0.11","type":"GALLERY","source":"IPFS_IMG"},{"name":"a09LeFiGito","id":"https://www.youtube.com/watch?v=a09LeFiGito","size":"0","type":null,"source":"YOUTUBE"},{"name":"FW58LEP9uFk","id":"https://www.youtube.com/watch?v=FW58LEP9uFk","size":"0","type":null,"source":"YOUTUBE"},{"name":"GfGCdjUXMAkuAip.png","id":"QmeQRoTHqu2G75vSxvFiYohrqoErqc4LHuBGDKbx7tuYAx","size":null,"type":null,"source":"IPFS_IMG"},{"name":"bfef0cd6a2a87fbc06a43ed7134d26b0b02c854d61f3244c10780fee88a6c3c1-e1712146194279.webp","id":"QmVkvZCoKEd3zAoZdPZy2UixJtq1X9eKmALTq2eW71Hw5w","size":null,"type":null,"source":"IPFS_IMG"}],"linkedWikis":{"founders":["guy-young"],"blockchains":["ethereum"],"speakers":[]},"events":[{"type":null,"date":"2023-01-01","multiDateStart":null,"multiDateEnd":null,"country":null,"continent":null,"title":"Date Founded","description":"USDe was introduced in 2023","link":"https://www.ethena.fi/","id":"dd834e8e-b64e-4aa5-b568-5b37515f6bb4"}],"founderWikis":[{"id":"guy-young","title":"Guy Young"}],"blockchainWikis":[{"id":"ethereum","title":"Ethereum"}],"metadata":[{"id":"website","value":"https://www.ethena.fi/"},{"id":"twitter_profile","value":"https://twitter.com/ethena_labs"},{"id":"github_profile","value":"https://github.com/ethena-labs"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/ethena-usde"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/ethena-usde/"},{"id":"discord_profile","value":"https://discord.gg/ethena"},{"id":"etherscan","value":"https://etherscan.io/token/0x4c9edd5852cd905f086c759e8383e09bff1e68b3"},{"id":"arbiscan","value":"https://arbiscan.io/token/0x5d3a1ff2b6bab83b63cd9ad0787074081a52ef34"},{"id":"bscscan","value":"https://bscscan.com/token/0x5d3a1ff2b6bab83b63cd9ad0787074081a52ef34"},{"id":"linkedin_profile","value":"https://www.linkedin.com/company/ethena-labs/"},{"id":"telegram_profile","value":"https://t.me/ethena_labs"},{"id":"words-changed","value":"264"},{"id":"percent-changed","value":"31.44"},{"id":"blocks-changed","value":"content, tags, summary"},{"id":"wiki-score","value":"91"},{"id":"references","value":"[{\"id\":\"ysfyl5iowth\",\"url\":\"https://ethena-labs.gitbook.io/ethena-labs/solution-overview/usde-overview\",\"description\":\"usde documentation\",\"timestamp\":1705580043264},{\"id\":\"iqjr28p7k6\",\"url\":\"https://thorhartvigsen.substack.com/p/usde-the-next-1b-stablecoin-an-interview\",\"description\":\"USDe, The Next $1b+ Stablecoin? An Interview w/ Ethena\",\"timestamp\":1705582024804},{\"id\":\"Hcy7id9UYk\",\"description\":\"Ethena: the stablecoin USDe is now available on Hyperliqiud and H\",\"timestamp\":1747860608304,\"url\":\"https://en.cryptonomist.ch/2025/05/06/ethena-the-stablecoin-usde-is-now-available-on-hyperliqiud-and-hyperevm/\"},{\"id\":\"xfzuyWcfwv\",\"description\":\"Ethena Launches USDe Integrations on Hyperliquid\\n\",\"timestamp\":1747860623703,\"url\":\"https://thedefiant.io/news/defi/ethena-launches-usde-integrations-on-hyperliquid\"},{\"id\":\"94uey0apye\",\"url\":\"https://gov.ethenafoundation.com/t/ethena-s-june-2026-governance-update/808\",\"description\":\"Ethena’s June 2026 governance update\",\"timestamp\":1789788203076},{\"id\":\"hbo80e6izp\",\"url\":\"https://gov.ethenafoundation.com/t/ethenas-may-2026-governance-update/796\",\"description\":\"Ethena’s May 2026 governance update\",\"timestamp\":1789788203076},{\"id\":\"0tal9o4va6\",\"url\":\"https://phemex.com/blogs/german-bafin-bars-ethena-usde-mica\",\"description\":\"German BaFin bars Ethena USDe under MiCA\",\"timestamp\":1789788203076},{\"id\":\"6cx2a5iyi0\",\"url\":\"https://cryptobriefing.com/ethena-usde-equity-perpetuals-backing/\",\"description\":\"Ethena’s USDe backs synthetic dollar with equity perps & more\",\"timestamp\":1789788203076}]"},{"id":"previous_cid","value":"QmWudpvyaAtCPsTSHsJANoNvyJwcC4DzNNCH56SmtQNWV6"},{"id":"commit-message","value":"Update Ethena USDe wiki: minor edits and fixes"},{"id":"previous_cid","value":"QmWudpvyaAtCPsTSHsJANoNvyJwcC4DzNNCH56SmtQNWV6"}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138"},"views":1752}