30s Summary

Ethena’s USDe yield-bearing token increased in value by $1 billion within a month, hitting $3.44 billion. This surge resulted from increased perpetual funding rates during the cryptocurrency rally. Investors could see a 29% annualized yield, as more exchanges consider listing USDe as collateral assets and plans to distribute protocol revenues to governance token holders. Ethena’s process draws revenue when the perpetual funding rates are positive and gives some of the income to investors as yield. With the crypto market on the rise, Ethena offers a 29% annualized yield to stakeholders who stake their tokens.

Full Article

Ethena’s USDe yield-bearing token gained $1 billion within a month, soaring to $3.44 billion. This leap resulted from an increase in perpetual funding rates during the cryptocurrency rally. Now, investors can expect a 29% annualized yield, up from a period when it was below the U.S. dollar risk-free rate during a lull in the crypto markets. The future seems positive with more exchanges listing USDe as collateral assets and plans to distribute protocol revenues to governance token holders, which could stimulate more growth. Ethena uses bitcoin and ether as backing assets, matching them with an equal value of short perpetual futures positions on various exchanges. This process generates revenue on its backing derivative assets when the perpetual funding rates are positive and shares some of the income as yield with investors. With the crypto market now in an upswing, and BTC hitting record highs, Ethena offers a 29% annualized yield to stakeholders who stake their tokens.