Ethena

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Ethena, a synthetic dollar protocol developed on the Ethereum blockchain, aims to offer a cryptocurrency-based financial solution independent of traditional banking infrastructure. Alongside this, it introduces a globally accessible savings instrument denominated in dollars, known as the 'Internet Bond.'

The protocol's synthetic dollar, USDe, stands out as the initial censorship-resistant, scalable, and stable crypto-native money solution. This stability is achieved through delta-hedging staked Ethereum collateral, ensuring full transparency of on-chain backing and enabling composability throughout decentralized finance (DeFi). To maintain the peg stability of USDe, derivatives positions are utilized to hedge against fluctuations in protocol-held collateral.

The 'Internet Bond' leverages yield generated from staked Ethereum, coupled with funding and basis spreads from perpetual and futures markets. This innovative on-chain 'bond' serves as a dollar-denominated savings option for users in permissible jurisdictions.