dailyhodl.com
The community behind a synthetic dollar protocol on Ethereum ($ETH) is proposing adding a top $ETH rival to its reserve assets for its stablecoin.
According to a new Ethena ($ENA) community proposal, the community is considering adding Solana ($SOL) as a reserve asset for the US-dollar pegged stablecoin $USDe.
“This proposal recommends an allocation of $USDe’s backing to $SOL utilizing substantially the same mechanics as Ethena’s hedging mechanism currently in place with BTC and $ETH perpetual futures.
The proposed allocation would be scaled into slowly in consultation with the Risk Committee considering $SOL perpetual futures’ shorter history of trading, less liquidity, and less historical funding rate data.”
The proposal would also add liquid-staked variants of $SOL, such as Binance Liquid Staked $SOL or Bybit Liquid Staked $SOL (bbSOL), to the diversified cache of $USDe reserves.
Furthermore, the proposal aims to unlock billions in open interest.
“In addition to potentially increasing protocol revenue via $SOL funding rates, this will unlock $2-3 billion in additional open interest – allowing Ethena to continue scaling $USDe from its current supply of approximately $2.5 billion and keep pace with any potential increase in market demand.”
$ENA is trading for $0.419 at time of writing, up 18.5% in the last 24 hours.
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