Introduction to ENA: Ethena’s New Generation Synthetic Dollar Protocol
Ethena is a synthetic dollar protocol based on Ethereum, designed to offer a cryptocurrency native solution independent of traditional banking systems. This protocol includes a globally accessible dollar-denominated savings tool—"Internet Bonds." The blockchain token ENA, following the ERC-20 standard, is central to the Ethena ecosystem, primarily serving as a governance token that allows holders to participate in future protocol decisions.
Decentralized Governance Mechanism of ENA Governance Token
Core of the governance architecture
ENA, as the core of the Ethena protocol governance structure, marks the platform's significant step towards decentralization. As a governance token, ENA enables holders to participate in the governance of the Ethena ecosystem, which includes decisions on key strategies, protocol updates, and financial management.
Rights of token holders
Users holding ENA tokens have voting rights and can vote on the development direction and governance proposals of the Ethena protocol. This mechanism ensures that token holders have a real voice and decision-making power in the platform's governance process, thereby strengthening their influence over the platform's future path.
Allocation and Lockup Strategy
The total supply of ENA is set at 15 billion, with the first airdrop of 750 million, accounting for 5% of the total supply. Additionally, 30% of the tokens are allocated to core contributors and investors, with this portion locked for one year to ensure long-term platform commitment and alignment of interests. A certain proportion of tokens is also allocated to the ecological economic development and Ethena Foundation to support the platform's continuous growth and stable development.
Moving towards disintermediation
With such a governance mechanism, Ethena is gradually transitioning to a decentralized and user-driven platform. In this model, every token holder is not only a capital provider but also a governance participant, enhancing the transparency and democratization level of platform governance.
Core Role and Impact of ENA in the Ethena Ecosystem
Core role of USDe
The main role of ENA tokens in the Ethena ecosystem is manifested through its stablecoin USDe. USDe is a synthetic dollar based on Ethereum, unlike traditional stablecoins such as USDC or USDT, it provides a new type of stablecoin by using cryptocurrency assets and short futures positions as collateral. This mechanism offers a censorship-resistant, scalable savings tool for global users, greatly enhancing the stability and reliability of digital currency.
Token Economy and Distribution
The total supply of ENA is 15 billion, with an initial circulating supply of 1.425 billion. In token distribution, core funders receive 30% of ENA, and this portion will be locked for one year and then gradually unlocked over three years. This distribution strategy aims to maintain supply stability and market confidence while ensuring the interests of long-term investors.
Collateral Strategy and Market Expansion
To achieve broader market expansion, Ethena also plans to use Bitcoin (BTC) as one of its collaterals. This move not only increases the market acceptance of USDe but may also bring additional liquidity, although it could dilute the returns of USDe.
Airdrop Activities and User Incentives
ENA's promotion also includes an airdrop campaign, allowing users to claim ENA tokens within 30 days of launch. This strategy is not only used to attract new users to the ecosystem but also to reward active users, with any unclaimed ENA being redistributed to those who continue to use USDe in the second quarter.
Overall Impact
The design of ENA tokens and USDe stablecoin reflects Ethena's emphasis on innovation and user participation. Through this unique economic model and distribution mechanism, Ethena not only drives the expansion of its ecosystem but also increases the activity of participants and the stability of the entire platform. This strategy effectively promotes the market circulation and ecological development of ENA, enhancing the overall appeal and competitiveness of the system.
Ethena Labs "Season Two" Detailed Plan
Event Background and Enhanced Partnerships
Ethena Labs' "Season Two" program, named the "Sats" event, uses BTC as a new support asset and is planned to last five months until September 2. This season features a collaboration with Frax Finance to establish a USDeFRAX liquidity pool, a significant expansion of ecosystem functionality. Additionally, Ethena has announced new partnerships with MakerDAO and Morpho, further deepening Ethena's integration and influence in the DeFi sector.
Reward Mechanism and User Incentives
In the new season, Ethena has increased user rewards, especially through new reward mechanisms introduced by Pendle and EigenLayer. For example, the cap for the new USDe Pendle pool on Mantle is set at $100 million, and users depositing USDe will receive additional EigenLayer points. Similarly, the USDe Pendle pool on the ETH mainnet is also capped at $100 million, with existing users who deposit into the pool receiving an additional 20% reward.
Strategies and Market Expansion
Moreover, Ethena Labs plans to introduce Bitcoin as collateral this season, a move that not only enhances USDe's market competitiveness but also brings new incremental hedging opportunities to the Bitcoin perpetual futures market. The team expects this to unlock about $25 billion in open contracts, with an anticipated annual total cash flow of about $2.75 billion, half of which will be paid to short sellers.
"Sats" Event Duration and Goals
The "Sats" event will continue until USDe's supply reaches $5 billion or until September 2. Currently, USDe's supply has already reached $1.6 billion. The event, by increasing rewards, compensates participants from the first season and encourages more users to join Ethena's ecosystem.
Key Factors for ENA Market Capitalization Growth
Project Innovation and Protocol Features
The growth in market capitalization of ENA tokens is firstly due to its unique project features. As a synthetic dollar stablecoin protocol, ENA uses Ethereum as collateral and employs a Delta hedging strategy, providing a censorship-resistant, scalable stable digital currency solution. This model functions like an open hedge fund, using liquidity-staked ETH as collateral while shorting an equal amount of ETH, innovatively providing new investment and trading opportunities for users.
Market Demand and Community Activities
The rapid growth of ENA tokens is also due to strong market demand and active community support. For instance, ENA's successful launch on Binance LaunchPool was very positively received by the market, immediately showing an asset size exceeding $1.5 billion, which reflects the market's high recognition and expectations for the ENA project.
Economic Benefits and Investment Returns
Investors' high interest in ENA partly stems from its potential economic benefits. ENA leverages the CDP mechanism to offer up to a 35% annual yield, and the income from hedging derivatives and basis spread provides additional economic incentives, attracting significant capital investment.
Technical Advantages and Security
Finally, the technical advantages of the ENA project are also a key factor in its market capitalization growth. Advanced technologies such as chemist sequencers, Optimistic zkEVM integration, and modular design not only ensure transaction security and efficiency but also provide solid technical support for ENA's long-term stable development.
In-depth Understanding of Ethena: Synthetic Dollar Stablecoin Protocol
Core Technology and Strategy
Ethena is a synthetic dollar stablecoin protocol built on Ethereum, and its core product, USDe, is implemented through a Delta hedging strategy. Ethena uses Ethereum as collateral and, through hedging operations, creates a value-stable investment portfolio, achieving asset censorship-resistance, scalability, and stability. This method essentially turns Ethena into an open hedge fund.
Asset Protection and Operational Security
To safeguard user assets, Ethena uses an Over-the-Counter Settlement (OES) solution, involving funds held by reputable third-party custodians to ensure users' collateral is not directly stored on centralized exchanges, thereby reducing risks. This mechanism increases transaction security while also ensuring liquidity and availability of funds.
Capital Efficiency and Uniqueness
By combining the yield from staked ETH with corresponding short positions, USDe achieves a 1:1 collateral ratio, making its capital efficiency comparable to that of dollar-backed stablecoins. Moreover, Ethena does not rely on traditional financial market assets, avoiding the risks of adhering to real-world regulations.
Future Development Possibilities
While currently using ETH as collateral, the protocol may expand to use BTC as collateral to increase scale and diversity. However, this expansion could dilute USDe's returns, as unlike ETH, BTC staking does not yield returns.
Product Advantages
USDe stablecoins and Internet Bonds offer a new, blockchain-native form of "bond" denominated in dollars, providing users with a savings tool priced in dollars, an unprecedented innovation in the cryptocurrency sector. By combining the yield from staked assets with perpetual and futures market funds and basis spreads, USDe offers global users a stable and appreciable investment option.
ENA Official Links
Website: https://www.ethena.fi/
Twitter：https://twitter.com/ethena_labs
Discord：https://discord.com/invite/HVfuYyNm8S
Telegram：https://t.me/ethena_labs
Steps to Buy ENA on LBank
Purchasing ENA tokens on the cryptocurrency exchange platform LBank is straightforward. Here's a step-by-step guide:
1. Log into your account: Ensure you're registered and logged into your LBank account, then click the "Trade" option in the top menu bar to start the trading process.
2. Search for ENA: Use the search function within the trading platform to find "ENA," locate the trading pair, such as ENA/USDT, and click to enter its dedicated page.
3. Place an order: In the ENA/USDT trading page's spot trading area, enter the amount of ENA you wish to buy. If you want to complete the purchase immediately at the current market price, select a market order and then click the "Buy" button.
4. Confirm the order: A confirmation window will pop up. After verifying the order details are correct, confirm to place your order. Once the transaction is successful, the purchased ENA will automatically be deposited into your LBank spot wallet.