Ethena Labs Raises $14 Million in Funding from PayPal Ventures and Publicly Launches USDe Stablecoin
Posted: February 16, 2024 8:49 AM Updated: February 16, 2024 8:49 AM
Correction and fact check date: February 16, 2024, 8:49 AM
briefly
Ethena Labs has raised $14 million to expand its team and accelerate development of its publicly launched Ethereum-based USDe stablecoin.
Ethena Labs, developer of the Ethereum (ETH)-based stablecoin USDe, rounds strategic funding led by Dragonfly, Brevan Howard Digital and Maelstrom, with participation from PayPal Ventures, Franklin Templeton, Avon Ventures, Binance, Deribit, Gemini and others. We raised $14 million. Kraken.
The company plans to allocate new capital and recruit quantitative engineers and business development executives in Asia to fuel team expansion. With this investment, the total value of the company is 300 million dollars.
Ethena Labs is focused on developing the USDe stablecoin. USDe operates on the Ethereum platform and is collateralized by derivatives. Our approach to maintaining price stability includes “delta-neutral” hedging across centralized and decentralized platforms. In other words, USDe is supported by combining long staked ETH positions and short ETH positions.
According to Ethena Labs, the approach adopted ensures that losses and profits are balanced in both positions, creating a profit profile denominated in US dollars. This concept is similar to traditional cash and carry strategies involving Treasury bonds and futures.
Ethena Labs also offers another product, a dollar-denominated savings vehicle called “Internet Bonds.” This bond enables value accrual through sUSDe, a staking version of USDe, capturing both the natural return of staked ETH and the underlying futures market. According to the company, the bonds have maintained an average annual return of 12 to 20 percent over the past two months.
Regarding other complete details about the funding, the company said that the exact statistics of the round will be shared soon for X.
Ethena Labs publicly launches USDe
In addition to attracting investment, the company is showing a rapid upward trend by officially announcing the launch of USDe stablecoin to the public following its stealth launch last year. $224 million Total Value Fixed (TVL).
To generate USDe, Ethena Labs allows users to deposit US dollars, Ethereum, or liquid staking tokens as collateral.
Founded in 2023, Portugal-based Ethena Labs envisions USDe as an innovative tool for user engagement in cryptocurrency markets. Stablecoins offer several advantages compared to traditional coins, providing an option for investors who want exposure to the cryptocurrency ecosystem without worrying about price fluctuations.
The latest investment will accelerate the expansion and growth of Ethena Labs operations, further contributing to the development of USDe and establishing a strong presence in the cryptocurrency market.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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