Business News Report
February 16, 2024

Ethena Labs Raises $14M Funding at $300M Valuation, Publicly Launches USDe Stablecoin 

In Brief

Ethena Labs raised $14M funding to expand the team and accelerate the development of its publicly launched Ethereum-backed USDe stablecoin.

Ethena Labs Raises $14 million from PayPal Ventures, Publicly Launches USDe Stablecoin 

Developer of stablecoin USDe based on Ethereum (ETH), Ethena Labs raised $14 million in a seed extension funding round led by DragonFly, Bybit, OKX, Deribit and Gemini with participation from Brevan Howard Digital, Franklin Templeton, Galaxy Digital, Hashed, Nic Carter, and his firm Castle Island Ventures.

The company plans to allocate the new capital to facilitate the team expansion, recruiting quantitative engineers and business development executives in the Asian region. The latest investment brought the company’s total valuation to $300 million

Ethena Labs is focused on developing USDe stablecoin. USDe operates on the Ethereum platform and is collateralized by derivatives. Its approach to maintaining price stability involves “delta-neutral” hedging across centralized and decentralized platforms. In other words, USDe is supported by combining a long-staked ETH position and a short ETH position.

According to Ethena Labs, the employed approach ensures that losses or gains from either position are balanced, resulting in a return profile denominated in US dollars. The concept behind this is analogous to conventional cash and carry strategies involving treasuries and futures.

Additionally, Ethena Labs offers another product–a dollar-denominated savings instrument called an “internet bond.” This bond allows for value accrual through sUSDe, the staked version of USDe, capturing both the natural yield from staked ETH and the basis in futures markets. According to the company, the bond has maintained an annualized yield of 12-20% over the past two months.

Regarding other complete intricate details of the funding, the company clarified on X that correct statistics of the round will be shared soon.

https://twitter.com/ethena_labs/status/1758473491479732366?s=20

Ethena Labs Publicly Launches USDe 

Along with receiving the investment, the company officially announced the launch of USDe stablecoin to the public after a stealth launch last year, rapidly gaining over $224 million in total value locked (TVL). 

To create USDe, Ethena Labs lets users deposit US dollars, Ethereum, or liquid staking tokens as collateral.

Founded in 2023, Portugal-based Ethena Labs envisions USDe as a transformative tool for user engagement with cryptocurrency market. Compared to its traditional counterparts, the stablecoin presents several advantages providing an option for investors seeking exposure to the cryptocurrency ecosystem without the concern of price volatility. Recently, the platform received support from Binance Labs after participating in its Season 6 incubation program.

The new investment is set to accelerate the expansion and growth of Ethena Labs operations, further contributing to the development of USDe and establishing its robust presence in the cryptocurrency market.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

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.

More articles
Alisa Davidson
Alisa Davidson

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.

Hot Stories
Join Our Newsletter.
Latest News

The DOGE Frenzy: Analysing Dogecoin’s (DOGE) Recent Surge in Value

The cryptocurrency industry is rapidly expanding, and meme coins are preparing for a significant upswing. Dogecoin (DOGE), ...

Know More

The Evolution of AI-Generated Content in the Metaverse

The emergence of generative AI content is one of the most fascinating developments inside the virtual environment ...

Know More
Join Our Innovative Tech Community
Read More
Read more
Io.net Unveils IO Tokenomics: Sets Maximum Supply At 800M With 50% Distribution To Community
Markets News Report Technology
Io.net Unveils IO Tokenomics: Sets Maximum Supply At 800M With 50% Distribution To Community
April 16, 2024
Magic Square Integrates 1inch Swap API And Initiates SQR Token Swap Competition With $25,000 In Rewards
Business News Report Technology
Magic Square Integrates 1inch Swap API And Initiates SQR Token Swap Competition With $25,000 In Rewards
April 16, 2024
Umoja Joins Forces With Merlin Chain To Release First Bitcoin-Based Synthetic Dollar USDb
Business Markets News Report
Umoja Joins Forces With Merlin Chain To Release First Bitcoin-Based Synthetic Dollar USDb
April 16, 2024
Fake ZOOM-WETH Trading Pair On Uniswap Detected By PeckShield, Chainzoom Postpones Token Generation Event
Markets News Report Technology
Fake ZOOM-WETH Trading Pair On Uniswap Detected By PeckShield, Chainzoom Postpones Token Generation Event
April 16, 2024