As a seasoned crypto investor with over a decade of experience in this dynamic market, I’ve seen countless projects come and go. However, the recent development with Ethena Foundation and Wintermute’s proposal to share DeFi protocol revenues with tokenholders is truly refreshing.
As an analyst, I’ve just learned that the Ethena Foundation has approved Wintermute’s plan to distribute a portion of the earnings from our decentralized finance (DeFi) protocol to our token holders. This information comes straight from Wintermute’s governance forum.
On the 6th of November, Wintermute, a prominent player in the cryptocurrency market, suggested using some of Ethena’s service fees to reward stakeholders who hold ENA, Ethena’s own digital currency.
On November 15th, the Ethena Foundation announced with delight that the suggestion for switching the $ENA fee mechanism had received approval from the Risk Committee, as discussed within our governance forum.
By November 30th, the Foundation plans to collaborate with the Risk Committee to establish specific guidelines for triggering a fee change. The detailed operational procedures will be outlined in due course.
In the month of February, Ethena Labs introduced a digital currency named USDe that pays interest. This USDe can be created by users using various tokens such as Bitcoin (Bitcoin), Ether (Ether), liquid staking derivatives (Liquid Staking Derivatives), and other stablecoins.
After that, Ethena takes steps to protect her portfolio from its natural fluctuations by utilizing off-exchange financial derivative contracts.
The circulating supply of the unique stablecoin issued by Ethena Labs, USDe, has significantly increased to approximately $3.2 billion since its launch in February, as reported by CoinMarketCap.
Introduced in April, Ethena’s ENA tokens can now be locked or saved for sENA tokens. Prior to Wintermute’s governance proposition, the mechanism for accumulating value through these tokens wasn’t clearly defined.
According to Wintermute’s November 6th governance proposal, the Ethena Protocol consistently brings in significant income, suggesting that it has achieved a strong match with the product market for USDe, indicating its effectiveness.
Sadly, sENA doesn’t gain any direct income from this revenue stream, which creates a clear separation between sENA owners and the development of the protocol.
It’s high time we admit this fact and start working on creating a strong connection between those who hold ENA (Ethereum Name Authority) and the core principles that govern the protocol.
On Oct. 25, Wintermute started accepting USDe as collateral for spot crypto and derivatives trades.
According to a recent announcement by Wintermute on their X platform, clients are now able to utilize USDe as security when engaging in options contracts, credit default swaps, forward trades, and spot trading.
The stablecoin has been added to Wintermute’s list of approved cryptocurrencies that can be used as collateral, which already includes Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and USD Coin (USDC), according to Wintermute.
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2024-11-16 01:02