Ethena Labs Backs USDe with Bitcoin

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Ethena Labs has announced that it has added Bitcoin as a backing asset for its USDe synthetic dollar. This decision was fueled by a surge in popularity of the world’s oldest digital asset among traders.

The DeFi protocol expressed that utilizing Bitcoin as a backing asset will increase USDe’s scalability by more than 2.5 times and provide a safer trading experience for users.

This shift comes at a time when the derivative market for Bitcoin is outpacing its ether-based counterparts.

Currently, with USDe’s supply worth around $2 billion, this move towards scaling closer to $10 billion is expected to enhance its stability and security for traders.

In addition, Ethena cited Bitcoin’s superior liquidity and longer-duration profile for delta hedging compared to liquid staking tokens as a major factor in including Bitcoin as a backing asset.