Ethena Raises $14 million including PayPal Ventures & Franklin Templeton
Overview
Ethena is developing a synthetic dollar protocol on the Ethereum blockchain, aimed at offering a cryptocurrency-based alternative to traditional financial systems. This includes a digital savings option called the 'Internet Bond' which will be accessible worldwide.
The protocol's synthetic dollar (USDe) intends to be the first to offer a decentralised, scalable and stable means of digital currency by utilising delta-hedging strategies with Ethereum as collateral. USDe promises full transparency and integration within decentralised finance ecosystems.
Stability of the USDe's value is maintained through delta hedging and an arbitrage mechanism that balances the issuance and redemption of tokens based on the collateral held by the protocol.
The 'Internet Bond' is designed to generate yield from Ethereum stakes and the differences in perpetual and futures markets. It aims to be the pioneering blockchain-based 'bond' that provides a dollar-denominated savings option for users in approved regions.
What is it exactly that makes USDe unique?
Announcement regarding an additional $14 million in funding February 16th 2024;
Ethena Labs has recently unlocked its Ethereum-based synthetic dollar for public use, following a successful $14 million funding round. This financial injection was supported by notable entities including PayPal Ventures and Franklin Templeton. The fundraising was spearheaded by Dragonfly and Maelstrom, the private investment office of BitMex's founder Arthur Hayes. Contributions also came from Avon Ventures, linked to Fidelity Investments' parent company FMR, as well as the investment arms of major cryptocurrency exchanges such as Bybit, OKX, Deribit and Gemini. This is alongside the most recent participation by PayPal and Franklin Templeton. This latest funding phase, complemented by a $6 million raise in July, brings Ethena's total venture capital backing to $20 million.
The USDe Supply during time of writing is ~$230 million:
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