coindesk.com
Users who lock 50% or more of their ENA relative to their balance of USDe will receive a reward boost of 50%.
ENA is trading at $1.26, having almost doubled since its debut last week.
Large holders have been withdrawing funds from Binance and staking to capitalize on the reward increase.
ENA, the native token of Ethena Labs, surged by 15% on Monday following the announcement of "season 2," which includes a 50% increase in rewards for a portion of users.
The token is currently trading at $1.26 after debuting at $0.64 last week, according to CoinMarketCap. Ethena Labs is a decentralized finance (DeFi) protocol behind the yield earning USDe stablecoin.
As of April 8, users can lock in ENA for a minimum of seven days. Users who lock 50% or more of their ENA relative to their balance of USDe will receive a reward boost of 50%.
Blockchain analytics firm Lookonchain reported that three wallets withdrew a total of 11.9 million ENA ($15.23 million) from Binance in order to stake.
"Team and investor allocations, which are locked on vesting schedules, will not be able to participate in the $ENA lock," Ethena Labs wrote in a blog post.
The initial cap of the ENA lock was set at $200 million and will be adjusted to increase over time.
Last week, Ethena introduced a strategy that involves purchasing bitcoin (BTC) and simultaneously shorting the asset to generate an annual yield in a cash and carry trade. The platform has employed a similar strategy on ether (ETH) since January.