Key Takeaways:
- Ethena Labs has partnered with Binance, Bybit, OKX, and Bitget to allow users to earn yields on USDe stablecoins, with a 20% bonus for locking in assets for seven days, payable in “Ethena sats.”
- Following the announcement, the top 10 wallets staked 37.5 million ENA, totaling $51 million, highlighting significant interest in Ethena’s staking opportunities.
- Despite high yields offered on USDe, Ethena Labs asserts that their yield generation is sustainable, relying on a mix of Ethereum consensus layer rewards, fees, maximal extractable value captures, and trading income.
Ethena Labs has announced a new integration with the exchange wallets of Binance, Bybit, OKX, and Bitget, effective April 10.
This collaboration enables users to earn yields on Ethena’s USDe stablecoins directly through these platforms.
We are excited to announce our integration with exchange wallets
— Ethena Labs (@ethena_labs) April 10, 2024
The integrated wallets are:@Web3WithBinance@Bybit_Official@okxweb3@BitgetWallet
Users locking USDe for at least 7 days through exchange Web3 wallets are eligible for a 20% reward boost starting today pic.twitter.com/kUJOLiKeKM
Starting now, users who lock their USDe in exchange Web3 wallets for a minimum of seven days are eligible for a 20% bonus on their earnings, payable in “Ethena sats.”
These rewards can later be converted into ENA, Ethena’s native token, at the conclusion of each reward period.
#Binance Web3 Wallet and @ethena_labs are launching an exclusive promotion!
— Binance Web3 | NFT | Inscriptions (@Web3WithBinance) April 10, 2024
Participate now via the #Binance App to earn additional airdrop tokens and receive an exclusive 20% boosted reward with the wallet!
Get started 👉 https://t.co/WBuoAsBxvC pic.twitter.com/RB8acSftmw
To participate, users must deposit Ethena USDe stablecoins into their respective exchange wallets, link these with Ethena’s decentralized finance (DeFi) protocol, and stake their assets.
Currently, the protocol boasts a total value locked (TVL) of $2.274 billion, generating an annual revenue of $178 million.
Complete USDe lock-in via #BitgetWallet now and enjoy a 20% bonus boost along with a share of 200,000 $BWB Points!
— Bitget Wallet 🩵 (@BitgetWallet) April 10, 2024
Don't miss out on this opportunity to maximize your rewards 🤝#BWB #BWBPoints #BWBAirdrop https://t.co/R8Zgt1PsAD pic.twitter.com/QKSV8lLgl2
Blockchain analytics firm Lookonchain reported that, following the initiation of Ethena Staking Season 2, the top 10 wallets have withdrawn and staked 37.5 million ENA, valued at $51 million.
Remarkably, Ethena’s USDe stablecoin has seen significant traction since its launch, with the protocol offering a 67% annual percentage yield (APY) on USDe at one point, positioning it as the highest-earning decentralized application in the sector.
🎤 Enjoy 20% Boost Points! New Campaign with @ethena_labs that you don't wanna miss!
— Bybit Web3 (@Bybit_Web3) April 10, 2024
💰 Staking $USDe on Bybit Wallet! Every 1 #USDe will enjoy 24X Ethena sats everyday(Normal is 20X)
📅 Start on Apr 11, 2024, 10AM UTC.
Join Now: https://t.co/l9R3dvUkhD#BybitWeb3 #ENA $ENA… pic.twitter.com/uX0k9HDcAV
The current APY stands at 24%. However, these yields come with their own set of risks, primarily dependent on the trading income from complex Ethereum derivatives.
🔥 Join our Ethena Bonus Event 🔥@ethena_labs is a synthetic dollar protocol built on Ethereum. Stake USDe with #OKXDeFi, and you could earn up to 120% in Sats!
— OKX Wallet (@okxweb3) April 10, 2024
Start today & see your rewards increase daily:https://t.co/WifHBQdNy8 pic.twitter.com/eAAgstzzUS
In response to concerns about the sustainability of these high yields, Ethena Labs founder Guy Young emphasized in a February interview that their yield generation methods are both organic and sustainable, distancing the protocol from comparisons to the failed TerraUSD (UST) stablecoin.
He clarified that Ethena’s yields are derived from a mix of Ethereum consensus layer inflation rewards, fees paid to Ethereum stakers, maximal extractable value fee captures, and trading income from Ethena Labs itself.
Users can connect to https://t.co/0P4E3k8RUn with any of the below wallets and you will see a green ✅ signifying eligibility
— Ethena Labs (@ethena_labs) April 10, 2024
To note, the 20% boost is not additive to the 50% $ENA boost or the 20% loyalty boost from the first season pic.twitter.com/DV0mY1o1Hu
The protocol strategically opens short derivative positions against the collateral assets used for minting USDe, with the yield paid out to USDe holders originating from the spread between these positions.
About The Author
Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.
With a knack for engaging storytelling and strategic content creation, Fleming is dedicated to educating and inspiring his audience with insightful analysis on cryptocurrencies, NFTs, and the future of digital finance.
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