Ethena Labs has put forth a proposal to the USDe community to include SOL as part of its collateral mix. Unlike stablecoins like USDT or USDC, USDe is a synthetic stablecoin that does not have a 1:1 backing with fiat assets. Instead, it maintains its $1 peg by collateralizing stablecoins and using hedged trades, along with risk-managed reserves.
If the proposal is approved by Ethena’s Risk Committee, SOL will gradually be integrated as a collateral asset for USDe, with an initial target allocation of $100-200 million in SOL positions. This would represent approximately 5-10% of SOL’s open interest. The proposal also explores the use of liquid staking tokens like BNSOL and bbSOL, similar to how ETH LSTs are utilized by Ethena.
In addition to this development, Ethena recently announced that $46 million from its reserve fund for USDe has been allocated to tokenized investments in real-world assets such as BlackRock’s BUIDL, Mountain’s USDM, Superstate’s USTB, and Sky’s USDS. This move aligns with the trend in DeFi towards generating yield from asset-backed tokens.
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Overall, the potential addition of SOL as collateral for USDe represents a significant step in further diversifying the assets backing this synthetic stablecoin. This move could provide more stability and security to the USDe ecosystem, while also opening up new opportunities for growth and innovation in the DeFi space.