Ethena Joins Forces With EigenLayer And Ether.fi To Enable USDe For Restaking
In Brief
Ethena teamed up with EigenLayer and Ether.fi to introduce USDe as dollar-pegged token used as security in EigenLayer’s security platform.
Developer behind the decentralized finance (DeFi) protocol for the USDe stablecoin, Ethena Labs announced it has forged a partnership with the Ethereum restaking protocol, EigenLayer, and the liquidity staking protocol, Ether.fi. This collaboration aims to introduce USDe as the first dollar-denominated token that can be utilized as security within EigenLayer’s generalized shared security platform. The integration is anticipated to launch next week.
Including dollar-denominated underlying assets as restaked collateral expands the potential use cases for Actively Validated Services (AVS) that prefer more stable and less volatile collateral options.
It was previously only possible to use ETH-based assets as collateral for staking. However, with upcoming developments, sUSDe may soon be added as a restaking asset. This change aims to create a more sustainable restaking model by embedding value accrual directly within the system, reducing the reliance on inflationary governance token rewards to incentivize restaking activity.
Ethena’s USDe will be available for deposit on Ether.fi, enabling the creation of a new Liquid Restaking Token (LRT), eUSD. This USDe-backed LRT will offer a dollar-pegged asset specifically for EigenLayer restaking. Looking ahead, the potential inclusion of sUSDe as a restaking token could provide AVSs with access to a more stable and uncorrelated collateral asset that also offers rewards for restakers.
As part of the integration between Ethena and EigenLayer, Ether.fi’s USDe vault will allow users to deposit various stablecoins in exchange for the new eUSD LRT. This token will be used to secure other systems and protocols within the generalized restaking framework. Additionally, eUSD LRT holders will benefit from maximum campaign rewards of 20x from Ethena, as well as earning points from Ether.fi and EigenLayer.
USDe Stablecoin Achieves Record $50M In Redemptions In August
Ethena Labs is behind the synthetic dollar protocol on Ethereum, providing a crypto-native alternative to traditional financial systems. The USDe stablecoin offers a scalable solution by using delta-hedging with Ethereum and Bitcoin collateral.
USDe is fully backed and can be seamlessly integrated into both centralized and decentralized finance ecosystems. Its peg stability is maintained through delta-hedging derivatives against protocol-held collateral, maintaining a relatively stable value with reference to the value spot cryptocurrency assets as well as futures positions.
Recently, USDe successfully processed over $50 million in redemptions overnight, marking its largest redemption to date as of August. According to Ethena Labs founder Guy Young, USDe’s collateral assets and reserves have consistently remained above 101% of its supply.
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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.
