- The group behind the yield-bearing stablecoin project USDE, Ethena Labs, said on Wednesday that it will be expanding to the Solana blockchain. With this change, USDE is now included on the distributed ledger, and SOL is now utilized to support the stablecoin’s reserves.
USDE Stablecoin Project Expands to Solana with Support from SOL
Even though Ethena Labs had redemptions of over $300 million in less than two weeks, they continued with the Solana integration. Ethena announced on X that Ethena’s Solana integration will take place on August 7.
Layerzero Labs OFT enabled USDE to be deployed on Solana, and SOL was onboarded as a supporting asset for USDE, contingent upon governance.
In addition, Ethena is starting a Solana Sats Campaign. According to Ethena, governance will be advised to use SOL as a backing asset for USDE starting next week.
This would improve USDE’s scalability even further by opening up an additional $2–3 billion in open interest across key exchanges. The team also mentioned Ethena’s intention to progressively further up its cooperation with SOL, subject to a governance vote.
Ethena came to the conclusion that SOL perps have less previous info on financing rates and started trading later.
But even with the introduction of ETFs for the last two assets, 2024 SOL funding has exceeded BTC and ETH in terms of year-to-date growth. Ethena will gradually scale into SOL as funding is monitored, subject to governance.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
