{CORE CONCEPTS}
02
// Ethena provides derivative infrastructure in order to transform Ethereum into the first crypto-native yield bearing synthetic dollar which is not reliant on the banking system: USDe
{THE ETHENA PRODUCT SUITE INCLUDES}:
// Ethereum enabled crypto-native synthetic dollar which provides an embedded yield to users and achieves price stability through delta-neutral hedging across centralized and decentralized venues_
// Utilizing either expiring futures or perpetual swaps a wide variety of fixed vs floating rate bond exposures can be created, and as a result, the first crypto yield curve_
// Capital efficient money markets on stETH and USDe collateral to allow for both enhanced yield and composable leverage across DeFi_
{PROPERTIES OF USDe}
03
// What makes USDe Unique?
Solving the decentralised money trillema
Delta-Neutral Stability
100% collateralized with trustless crypto assets
Censorship Resistant
No collateral within the
banking system
Embedded Yield
Captures yield from stETH
and basis arbitrage
Scalable
Does not require
overcollateralization
{HOW IT WORKS}
04
// Creation Mechanics of USDe
Ethena enables users to deposit either USD, Ethereum or liquid staking tokens as collateral to create USDe. Stability is ensured through delta-neutral hedging process across centralized and decentralized exchanges.
Collateral is distributed to secure onchain custodial wallets, and a corresponding short position is taken for delta-neutral collateralization.
USDe is the first decentralized, scalable, and stable asset with returns derived from the economic activity of Ethereum and futures markets.
// Onchain Security of USDe
Ethena distributes collateral to a diverse set of secure, programmable, and transparent onchain MPC custodial contracts. Onchain deposit of collateral ensures no reliance on centralized servers for custody thereby mitigating counterparty risk.
Seamless connectivity to major liquidity venues for managing basis risk and optimizing funding while users retain full custody of USDe for redemption or composability through DeFi.
// Unlock Composable Leverage
USDe generates an embedded yield to users through staked Ethereum returns as well as capturing the basis in ETH perpetual funding rates.
This yield generated via staked Ethereum returns and harvesting futures premium is accrued to the user unlike centralized stablecoins.
The Ethena native money markets will further enable minting of USDe against liquid staking tokens to allow users to maintain long exposure to Ethereum whilst generating USD liquidity.
Repo financing will unlock highly efficient post-leverage returns on the embedded yield of USDe Internet Bonds.