2024-04-11
Users can now earn Ethena USDe yields directly from popular centralized exchange wallets such as Binance, Bybit, OKX, and Bitget. Ethena Labs, the synthetic stablecoin protocol, has recently integrated with these wallets, giving users the opportunity to earn rewards.
To participate, users need to lock their USDe stablecoins for a minimum of 7 days through their exchange Web3 wallets. Starting from today, they will receive a 20% reward boost.
These rewards, known as "Ethena sats," can be converted to the native ENA token at the end of each campaign.
To earn sats, users must deposit Ethena USDe stablecoins into their exchange wallets, connect to the Ethena decentralized finance (DeFi) protocol, and stake their holdings. The protocol has a total value locked of $2.274 billion, generating an annualized revenue of $178 million.
The ecosystem rewards of the Ethena protocol have gained significant attention and usage. Since the beginning of Ethena Staking Season 2, the top 10 wallets have withdrawn a total of 37.5 million ENA ($51 million) and staked them.
Ethena made headlines when it launched its USDe stablecoin and offered a lucrative 67% annual percentage yield (APY). Currently, the protocol offers a stable APY of 24% on its stablecoins.
However, it's important to note that these high yields come with risks, as they rely on trading income from complex Ethereum derivatives.
Addressing concerns about the sustainability of their yields, Guy Young, the founder of Ethena Labs, stated that comparisons to failed stablecoins like TerraUSD (UST) were unfounded.
He emphasized that Ethena's yields are organic and sustainable, unlike other protocols that rely on venture capital funding.
Ethena's verifiable yields are derived from a combination of Ethereum consensus layer inflation rewards, fees paid to Ether (ETH) stakers, value fee captures from Ether stakers, and trading income provided by Ethena Labs.
The firm strategically opens short derivative positions when it receives long-position collateral assets for minting USDe, and the difference in value between these positions is distributed as yield to USDe holders.
