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Ethena Labs and Lyra Finance Partner for Unique ETH Strategy

source-logo  crypto-news-flash.com 09 July 2024 10:45, UTC
  • Lyra Finance partners with Ethena Labs to offer leveraged ETH exposure without initial capital risk.
  • Ethena Labs’ stablecoin USDe gains utility through integration with Cloudbet and Bybit.

Restaking derivative platform Lyra Finance announced in a recent tweet its partnership with Ethena Labs. By means of this partnership, users of the site have more ETH exposure without running any initial risk.

While keeping their sUSDe returns when ETH prices remain constant, users may possibly make up to 2.5x their sUSDe returns when the price of ETH increases.

Today, we're partnering with @ethena_labs to provide users extra upside exposure to ETH without risking any of their initial capital.

Earn 2.5x on your sUSDe yield when ETH goes up, preserve your sUSDe yield when ETH is flat.

Deposit now → https://t.co/bGjEaIaQY3 pic.twitter.com/dXp64AX6p5

— Lyra (@lyrafinance) July 9, 2024

Lyra Finance’s Strategic Use of Bull Call Spreads for Enhanced ETH Exposure

Lyra Finance clarified the workings of this alliance by stating that they use the USDE yields of the previous week to acquire bull call spreads.

Using leveraged exposure to ETH, this strategy maximizes the best-performing dividends in a bullish market. This creative approach seeks to optimize user returns while lowering the initial capital investment risk.

Positive sentiments about Ethena Labs this year have resulted in forecasts that, together with the Ripple’s XRP, its price would climb to $1, based on a prior CNF report.

Meanwhile, ENA’s price at the time of writing is about $0.4086, which shows a 6.87% rise over the last 24 hours. ENA stays in a medium-term bearish pattern despite this recent rise, suggesting some market concern.

With its market cap at a peak of $1.9 billion, ENA earlier had a notable increase, rising over 90% after launch. This outstanding accomplishment emphasizes the increasing interest in Ethena Labs and products as well as the faith in them.

Not only that, Ethena Labs also formed another noteworthy alliance with top crypto casino and sportsbook Cloudbet. As a result of this collaboration, Cloudbet has added Ethena USDe (sUSDe) to its platform, increasing the use and accessibility of Ethena Labs stablecoin.

Regarding their stablecoin, Ethena Labs has published a triple attestation report guaranteeing the security of the $2.67 billion underlying assets supporting its USD stablecoin. These assets are confirmed in this paper to be kept in institutional custody arrangements, therefore guaranteeing their continued off-exchange protection from possible market instability.

May also saw USD integrated with the well-known crypto exchange Bybit as collateral for perpetual futures trading. For Ethena Labs, this integration represents yet another major turning point since it improves the acceptance and usability of their stablecoin in the larger crypto scene.