Overview
The Ethena Shard Campaign concluded on April 1st after six weeks, marking a significant period for the Ethena protocol and its USDe supply, which grew to over $1.3 billion. This rapid growth made USDe the fastest USD-denominated asset to surpass $1 billion in supply within the crypto industry, outperforming the entire tokenized treasury Real-World Assets market by 1.5 times and the total on-chain Ethereum open interest across all Decentralized Exchanges by three times. It also exceeded the combined supply of all stablecoins across several platforms.
Ethena set a record in the industry by becoming the highest earning protocol within three weeks, establishing new DeFi interest rate benchmarks and increasing its Reserve Fund to over $25 million within a month. The protocol has integrated with major DeFi pillars such as MakerDAO, Frax, Curve Finance and Aave.
The protocol plans to decentralize with the introduction of its native token, ENA, on April 2nd, 2024. This will involve distributing ENA tokens to users based on their participation in the ecosystem, measured by "shards'' accumulated over the last six weeks. The distribution process emphasises security and transparency, warning users against fraudulent links.
ENA Eligibility
The eligibility for ENA distribution depends on users' actions regarding their USDe holdings and participation in incentivized pools. Certain conditions must be met to maintain eligibility for the airdrop, with specific instructions for NFT holders from designated collections.
ENA Vesting Schedule
The ENA token's vesting schedule is designed to encourage long-term participation in the Ethena ecosystem. The top 2,000 wallets by shard count will undergo a vesting period, promoting alignment between immediate rewards and sustained involvement in the protocol.
The tokenomics of ENA aim to support the protocol's growth and development, with a total supply of 15 billion and an initial circulating supply of 1.425 billion. The distribution plan covers various stakeholders, including core contributors, investors, the Foundation and ecosystem development.
The vesting schedule of these respective sections can be broken down as shown by the below image taken from the official Ethena post:
ENA's primary utility will be in governance, allowing token holders to influence significant decisions regarding the protocol's operation. This includes the following:
- General risk management frameworks
- USDe backing composition
- Exchange exposure
- Custodian exposure
- DEX integrations
- Cross chain integrations
- New product prioritisation
- Community grants
- Sizing and composition of Reserve Fund
- Distribution allocation between sUSDe and Reserve Fund.
The upcoming Sats Campaign, following the ENA token launch, aims to expand USDe's capacity by integrating Bitcoin as a backing asset, offering increased rewards for early participants and fostering further development of the Ethena ecosystem.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
Overview
The Ethena Shard Campaign concluded on April 1st after six weeks, marking a significant period for the Ethena protocol and its USDe supply, which grew to over $1.3 billion. This rapid growth made USDe the fastest USD-denominated asset to surpass $1 billion in supply within the crypto industry, outperforming the entire tokenized treasury Real-World Assets market by 1.5 times and the total on-chain Ethereum open interest across all Decentralized Exchanges by three times. It also exceeded the combined supply of all stablecoins across several platforms.
Ethena set a record in the industry by becoming the highest earning protocol within three weeks, establishing new DeFi interest rate benchmarks and increasing its Reserve Fund to over $25 million within a month. The protocol has integrated with major DeFi pillars such as MakerDAO, Frax, Curve Finance and Aave.
The protocol plans to decentralize with the introduction of its native token, ENA, on April 2nd, 2024. This will involve distributing ENA tokens to users based on their participation in the ecosystem, measured by "shards'' accumulated over the last six weeks. The distribution process emphasises security and transparency, warning users against fraudulent links.
ENA Eligibility
The eligibility for ENA distribution depends on users' actions regarding their USDe holdings and participation in incentivized pools. Certain conditions must be met to maintain eligibility for the airdrop, with specific instructions for NFT holders from designated collections.
ENA Vesting Schedule
The ENA token's vesting schedule is designed to encourage long-term participation in the Ethena ecosystem. The top 2,000 wallets by shard count will undergo a vesting period, promoting alignment between immediate rewards and sustained involvement in the protocol.
The tokenomics of ENA aim to support the protocol's growth and development, with a total supply of 15 billion and an initial circulating supply of 1.425 billion. The distribution plan covers various stakeholders, including core contributors, investors, the Foundation and ecosystem development.
The vesting schedule of these respective sections can be broken down as shown by the below image taken from the official Ethena post:
ENA's primary utility will be in governance, allowing token holders to influence significant decisions regarding the protocol's operation. This includes the following:
- General risk management frameworks
- USDe backing composition
- Exchange exposure
- Custodian exposure
- DEX integrations
- Cross chain integrations
- New product prioritisation
- Community grants
- Sizing and composition of Reserve Fund
- Distribution allocation between sUSDe and Reserve Fund.
The upcoming Sats Campaign, following the ENA token launch, aims to expand USDe's capacity by integrating Bitcoin as a backing asset, offering increased rewards for early participants and fostering further development of the Ethena ecosystem.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
Overview
The Ethena Shard Campaign concluded on April 1st after six weeks, marking a significant period for the Ethena protocol and its USDe supply, which grew to over $1.3 billion. This rapid growth made USDe the fastest USD-denominated asset to surpass $1 billion in supply within the crypto industry, outperforming the entire tokenized treasury Real-World Assets market by 1.5 times and the total on-chain Ethereum open interest across all Decentralized Exchanges by three times. It also exceeded the combined supply of all stablecoins across several platforms.
Ethena set a record in the industry by becoming the highest earning protocol within three weeks, establishing new DeFi interest rate benchmarks and increasing its Reserve Fund to over $25 million within a month. The protocol has integrated with major DeFi pillars such as MakerDAO, Frax, Curve Finance and Aave.
The protocol plans to decentralize with the introduction of its native token, ENA, on April 2nd, 2024. This will involve distributing ENA tokens to users based on their participation in the ecosystem, measured by "shards'' accumulated over the last six weeks. The distribution process emphasises security and transparency, warning users against fraudulent links.
ENA Eligibility
The eligibility for ENA distribution depends on users' actions regarding their USDe holdings and participation in incentivized pools. Certain conditions must be met to maintain eligibility for the airdrop, with specific instructions for NFT holders from designated collections.
ENA Vesting Schedule
The ENA token's vesting schedule is designed to encourage long-term participation in the Ethena ecosystem. The top 2,000 wallets by shard count will undergo a vesting period, promoting alignment between immediate rewards and sustained involvement in the protocol.
The tokenomics of ENA aim to support the protocol's growth and development, with a total supply of 15 billion and an initial circulating supply of 1.425 billion. The distribution plan covers various stakeholders, including core contributors, investors, the Foundation and ecosystem development.
The vesting schedule of these respective sections can be broken down as shown by the below image taken from the official Ethena post:
ENA's primary utility will be in governance, allowing token holders to influence significant decisions regarding the protocol's operation. This includes the following:
- General risk management frameworks
- USDe backing composition
- Exchange exposure
- Custodian exposure
- DEX integrations
- Cross chain integrations
- New product prioritisation
- Community grants
- Sizing and composition of Reserve Fund
- Distribution allocation between sUSDe and Reserve Fund.
The upcoming Sats Campaign, following the ENA token launch, aims to expand USDe's capacity by integrating Bitcoin as a backing asset, offering increased rewards for early participants and fostering further development of the Ethena ecosystem.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
