30s Summary

Crypto exchange Deribit is integrating USDe, Ethena’s synthetic dollar, as reward-based collateral, allowing users to earn perks for holding and using USDe in derivatives margin collateral. Subject to regulatory approval, USDe will join the platform’s cross-collateral pool in January. Other exchanges such as Bitget and Gate are also adopting USDe as margin collateral. Ethena’s USDe, which replicates the value of the dollar without being directly backed by it, operates on delta-hedging derivatives positions on perpetual and futures markets, essentially making it a decentralized financial instrument.

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Deribit, a big name in the crypto exchange world, is linking up with Ethena’s synthetic dollar, USDe, which will act as a reward-based collateral. Users on Deribit will soon be able to get their hands on perks just for hanging on to USDe and using it in the derivatives margin collateral.

According to Deribit, USDe will join the cross-collateral pool in early January, provided all the official regulators give it the green light.

This integration is going to open some totally new doors in the world of structured products. Guy Young, founder of Ethena Labs, says there are new use cases on the horizon that weren’t conceivable with the traditional crypto exchanges that mainly used plain-vanilla stablecoin collateral.

Thanks to the integration, Young predicts that Deribit will become a key player in USDe uses. So, whether you’re into traditional finance or a crypto-native trader, you might want to keep an eye on this space!

It’s not just Deribit that’s capitalizing on this opportunity. Other crypto exchanges like Bitget and Gate are also integrating USDe as margin collateral.

Ethena’s USDe isn’t your run-of-the-mill digital dollar. It’s actually super high-tech – it mimics the value of the US dollar without being directly backed by physical dollars. So how does it work then? Well, it’s all down to delta-hedging derivatives positions on perpetual and futures markets. It’s basically a completely decentralized financial instrument.

As well as USDe, Ethena has its own token, ENA. It’s the governance token in the Ethena ecosystem and it’s been making waves recently.

When the news of the integration with Deribit broke, ENA’s value jumped by around 13% in a single day. In fact, over the past month, it’s climbed around 70%.

It’s also worth noting that Ethena Labs is working on its new stablecoin project, UStb, alongside the big Bitcoin investor BlackRock and digital securities platform Securitize.