Ethena Integrates With Solana, Expanding Access To USDe And Adding SOL As Supported Asset
In Brief
Ethena Labs integrated with Solana, aiming to deploy USDe on its blockchain, and include SOL as a backing asset for USDe.
Developer of the decentralized finance (DeFi) protocol for the USDe stablecoin, Ethena Labs, announced an integration with the Solana blockchain. This integration aims to deploy USDe on Solana (SOL) and introduce Layer Zero OFT. Additionally, it involves the inclusion of SOL as a backing asset for USDe, a move currently under governance review, along with the launch of Solana Sats Campaign.
This deployment enables Solana users to conduct USDe transactions and earn rewards in sUSDe from Ethena Labs. Currently, more than 90% of the $3.5 billion stablecoin supply on Solana does not offer users the opportunity to earn rewards.
Furthermore, Ethena Labs has proposed adding SOL as a backing asset for USDe, with this proposal set to be reviewed by governance next week. This addition is anticipated to unlock an additional $2 to $3 billion in open interest across major exchanges, which will enhance the scalability of USDe.
SOL perpetual contracts began trading at a later date, and there is less historical data on funding rates. However, year-to-date, in 2024, SOL funding rates have surpassed those of both BTC and ETH, even after ETFs for BTC and ETH were launched. Pending governance approval, Ethena Labs plans to gradually increase its exposure to SOL while monitoring funding rates.
Ethena Labs Introduces Solana Sats Campaign
Ethena’s integration with Solana also introduces new opportunities for earning Sats on Solana through a new campaign. Key highlight Sats integrations of this initiative include partner protocols such as Kamino, Orca, and Drift.
USDe has officially launched on Solana’s Kamino money market, which currently holds over $1 billion in total value locked (TVL), enabling users to earn 5x Sats on sUSDe collateral and 20x Sats on USDe collateral. Apart from that, one of Solana’s most active decentralized exchanges (DEXs) hit $1.5 billion in daily volume earlier this week, now offering users the opportunity to earn Sats by providing liquidity to USDe and sUSDe pairs against PYUSD at a rate of 30x Sats per day.
Similarly, Drift, having achieved $1 billion in daily derivatives volume earlier this week, is a major player among derivative DEXs, allowing users to margin their positions with USDe or sUSDe while earning 5x for sUSDe collateral and 20x for USDe. Additionally, JitoSOL is under consideration for governance decisions related to onboarding SOL as a backing asset for USDe. Ethena Labs is also planning to integrate USDe with its restaking infrastructure once it becomes operational.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
