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- sENA allows users to maintain liquidity with their staked ENA, opening opportunities across multiple DeFi applications and platforms.
- Ethena Labs integrated Coinbase Prime Web3 Wallet to streamline minting and redemption processes for its Ethereum-based protocol.
Ethena Labs has made tremendous progress in the DeFi field, particularly with recent advances involving their native token, ENA, and its liquid receipt cousin, sENA. The launch of sENA is a significant milestone, as it provides consumers with a liquid receipt token for locked ENA.
This novel solution allows users to preserve liquidity while holding their staked ENA, allowing them to participate in a variety of DeFi apps without having to unstake their tokens.
As of today, sENA is live as the liquid receipt token for locked ENA, allowing users to maintain liquidity with their staked ENA position
sENA should present minimal operational difference from a user’s perspective; however, the liquidity and transferability will allow users to… pic.twitter.com/4STIPZIe5R
— Ethena Labs (@ethena_labs) September 17, 2024
sENA Unlocks DeFi Potential with Increased Liquidity and 40x Rewards
From the standpoint of the user, sENA has few operational changes from ENA, but the increased liquidity and transferability bring up a plethora of possibilities in decentralized finance.
Ethena Labs has verified that sENA is compatible with a wide number of DeFi applications, including Pendle, money markets, staking platforms, and third-party protocols.
This adaptability elevates sENA from a passive holding to an active asset that users may use in a variety of ways, increasing the token’s utility within the larger DeFi ecosystem.
One of the most noticeable aspects of sENA in the present DeFi scene is its significant reward multiplier. In Season 3, sENA holders will receive the highest daily rewards multiplier of 40x, making it an appealing alternative for individuals wishing to optimize their profits.
The flawless compatibility with different DeFi platforms reinforces sENA’s position as a critical component in Ethena’s protocol. Users can convert their locked ENA to sENA using Ethena Apps, and new sENA pools are likely to become available on Pendle soon.
Reallocation Mechanism Enhances Long-Term Rewards for Holders
Another key feature of sENA is its technique for reallocating unvested ENA. Any ENA that does not meet the vesting requirements will be transferred to sENA pools on a monthly basis. These tokens are then distributed as extra rewards to sENA holders, maintaining a steady flow of value to individuals who take part in the system.
This mechanism provides a recurring incentive for sENA holders by strengthening their positions over time through organic yield and redistributed rewards.
Beside that, as we previously reported, Ethena Labs has selected Coinbase Prime as its custodian service provider for USDC and self-custodial wallets. This integration is part of Ethena’s larger effort to improve its Ethereum-based protocol by improving the minting and redeeming processes.
Coinbase Prime’s Web3 Wallet has been included in the protocol, allowing users to manage their assets securely and efficiently. This move enhances Ethena’s infrastructure, allowing institutional and retail users to confidently interact with the platform.
On the other hand, according to CNF, Ethena Labs has entered the Solana ecosystem with the launch of USDe. Ethena is expanding its reach by integrating SOL as a potential collateral asset, subject to governance approval, and providing Solana users with the possibility to earn rewards through sUSDe and Sats Ethena.
The cross-chain nature of these interfaces demonstrates Ethena Labs’ dedication to building a flexible, multi-network DeFi ecosystem that capitalizes on the capabilities of both Ethereum and Solana.
At the time of writing, ENA, Ethena’s native token, has increased by 8.10% over the last 24 hours, bringing its price to around $0.2319. This increase has pushed ENA’s market cap above $440 million.