The neighborhood behind an artificial greenback protocol on Ethereum (ETH) is proposing including a high ETH rival to its reserve property for its stablecoin.
In keeping with a brand new Ethena (ENA) neighborhood proposal, the neighborhood is contemplating including Solana (SOL) as a reserve asset for the US-dollar pegged stablecoin USDe.
“This proposal recommends an allocation of USDe’s backing to SOL using considerably the identical mechanics as Ethena’s hedging mechanism presently in place with BTC and ETH perpetual futures.
The proposed allocation could be scaled into slowly in session with the Danger Committee contemplating SOL perpetual futures’ shorter historical past of buying and selling, much less liquidity, and fewer historic funding price information.”
The proposal would additionally add liquid-staked variants of SOL, reminiscent of Binance Liquid Staked SOL or Bybit Liquid Staked SOL (bbSOL), to the diversified cache of USDe reserves.
Moreover, the proposal goals to unlock billions in open curiosity.
“Along with doubtlessly growing protocol income through SOL funding charges, it will unlock $2-3 billion in further open curiosity – permitting Ethena to proceed scaling USDe from its present provide of roughly $2.5 billion and hold tempo with any potential enhance in market demand.”
ENA is buying and selling for $0.419 at time of writing, up 18.5% within the final 24 hours.
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