Key Takeaways
- Ethena Labs secures a successful $6.5M seed funding round, led by Dragonfly.
- The first product, USDe, is a crypto-native stablecoin that ensures stability through on-chain collateralization.
- Ethena Labs’ second product, the Internet Bond, aims to create a globally accessible and permissionless crypto savings instrument.
Ethena Labs has successfully raised $6.5 million in a seed funding round led by Dragonfly. It is strongly supported by Arthur Hayes, the Co-Founder of BitMEX, along with major derivative exchanges. This substantial investment marks a pivotal milestone for Ethena Labs. It embarks on its mission to develop a scalable stablecoin that operates independently of the traditional banking system.
At the forefront of Ethena Labs’ offerings is the ambitious USDe stablecoin, designed as a crypto-native solution fully collateralized on-chain. The project employs a unique approach by delta-hedging ETH collateral across centralized and decentralized exchanges. This innovative strategy aims to safeguard USDe against volatility and enable it to function seamlessly.
Additionally, Ethena Labs is pioneering the concept of the Internet Bond. It is a groundbreaking product that seeks to capture stETH yield and the basis in futures markets. This innovation is set to revolutionize the crypto savings landscape by introducing a globally accessible and permissionless savings instrument. The project aligns with Arthur Hayes’ vision of a derivative-backed stablecoin.
The Ethena Labs initiative couldn’t have come at a better time, considering the ever-growing demand for stablecoins in the crypto space. Although existing stablecoins provide a measure of stability, they often fall short in generating returns due to their conservative nature.
Ethena Labs’ determination to provide a versatile and efficient stablecoin solution reflects its commitment to the broader crypto ecosystem. The project aims to bolster accessibility and financial freedom for users worldwide.
Ethena Labs’ innovative approach to stablecoins and crypto savings instruments holds the potential to shape the industry’s future. The project is well-positioned to make a significant impact and capitalize on the tremendous market opportunity that lies ahead.
Source
https://twitter.com/ethena_labs/status/1681592637537816578?s=20
