What Is USDe?

1. Introduction to USDe

Throughout the evolution of the cryptocurrency market, stablecoins have always been the cornerstone of the industry. From early fiat-collateralized stablecoins such as USDT and USDC to overcollateralized decentralized stablecoins such as DAI, the market has continually searched for a solution that can preserve decentralization while also offering extremely high scalability. Since 2023, Ethena Labs has entered the public spotlight with an innovative vision: to create an "Internet Bond" that does not rely on the traditional banking system, runs entirely on-chain, and possesses native yield-generating capability.

USDe is the "synthetic dollar" born in this context. It is not backed by bank deposits, nor does it rely on highly volatile collateralized lending. Instead, it uses sophisticated derivatives strategies and Ethereum staking technology to build an entirely new stable value system. The emergence of USDe aims to break the stablecoin market’s dependence on centralized financial institutions and provide the DeFi world with a settlement asset that is more censorship-resistant, highly scalable, and capable of generating real yield.

2. USDe, the Synthetic Stablecoin

Unlike traditional stablecoin mechanisms, USDe is defined as a "synthetic stablecoin," and its underlying collateral assets mainly consist of Ethereum (ETH) and its liquid staking tokens. Its core stability mechanism is based on a delta-neutral hedging strategy: whenever the system issues one USDe, the Ethena protocol uses an equivalent value of Ethereum as spot backing, while simultaneously opening a corresponding Ethereum short perpetual contract on a centralized or decentralized exchange.

This combination of "Ethereum spot + short position" ensures that whether the market rises or falls, the overall value of the asset portfolio can remain precisely anchored to 1 US dollar, thereby achieving stability without traditional fiat reserves and being fully driven by crypto-native assets.

What makes USDe unique lies not only in its robust collateral system centered around Ethereum, but also in its strong endogenous yield-generating capability. According to protocol data from January 2025, the yield on USDe’s backing assets mainly comes from Ethereum’s native rewards and related derivatives. This diversified yield structure, derived from the industry’s most mature public blockchain, not only helps ensure the sustainability of returns but also effectively diversifies systemic risk:

• Ethereum staking yield: By holding liquid staking Ethereum tokens (LSTs), the protocol can earn consensus layer inflation rewards, execution layer fees, and MEV revenue. Although execution layer income fluctuates with on-chain activity, its long-term average annualized yield is approximately between 3% and 6%. As of early 2025, this portion accounted for about 6% of the assets backing USDe.

• Funding rates and basis from derivatives positions: This is the most important source of USDe yield, accounting for 92% of the backing assets. Due to strong market demand for leveraged long positions in digital assets, participants holding short delta exposure can usually receive positive funding rates. Historical data shows that the annualized yield of Ethereum perpetual contracts was as high as 16% in 2021, about 9% in 2023, and rebounded to around 13% in 2024.

• Fixed rewards from liquid stablecoins: In addition to the crypto-native dynamic returns above, the protocol also earns stable fixed returns by holding large amounts of liquid stablecoins, which can be regarded as the protocol’s "cash management yield." As of August 2025, Ethena’s custodied assets included more than $5 billion in stablecoins such as USDC, USDT, and USDtb. These assets are not idle, but instead generate value through cooperation with large compliant institutions.

This "synthetic" model allows USDe to break free from the constraints of traditional finance and turn market volatility into stable returns for holders.

3. USDe, Integration With DeFi Protocols

USDe is not merely a static store of wealth. It is more like a liquidity engine that has produced deep synergies across the entire DeFi ecosystem. By staking USDe into sUSDe, users can directly receive the various forms of real yield generated by the protocol. This "native yield" feature enabled USDe to become a highly sought-after asset integrated by major DeFi protocols within a very short period of time.

USDe has a very high level of participation in liquidity mining and lending markets. For example, on yield derivatives protocols such as Pendle, users can split and trade the future yield of USDe. On decentralized exchanges such as Curve and Uniswap, USDe liquidity pools provide traders with extremely low slippage. More importantly, USDe is changing the definition of the "risk-free rate" in DeFi. In the past, users were accustomed to relying on subsidized yield from lending markets. Now, USDe provides a stable return sourced from Ethereum’s underlying infrastructure and the global derivatives market, creating a stronger profit foundation for various structured financial products.

4. Introduction to the Ethena Project

As the development team behind USDe, Ethena Labs is one of the most innovative teams in the crypto finance sector. The project was founded by Guy Young and has received strong backing from top-tier venture capital firms including Dragonfly and Delphi Digital. Ethena’s goal is far greater than simply issuing a token. The team is attempting to build a fully decentralized financial infrastructure.

To strengthen the system’s robustness and scalability, Ethena further incorporated Bitcoin (BTC) into USDe’s collateral backing system in 2024, greatly increasing USDe’s issuance ceiling. By continuously strengthening information disclosure and transparency, Ethena releases monthly custody attestation reports to ensure that the derivatives positions and staked assets behind every USDe are traceable. This professional and transparent operating style has enabled Ethena to stand out in the highly competitive stablecoin sector and become a leader in on-chain native finance.

5. How to Obtain USDe

The minting and acquisition of USDe are divided into the primary market and the secondary market. The primary market is usually dominated by large compliant institutions, which directly mint USDe by submitting collateral such as stETH to the Ethena protocol and completing the corresponding derivatives hedging in the background. For individual users, the most convenient method is undoubtedly to purchase it through cryptocurrency exchanges in the secondary market.

Obtaining USDe through centralized cryptocurrency exchanges such as Bitunix is currently the preferred option for individual investors. Bitunix provides users with a secure and ultra-fast trading experience. Before trading on Bitunix, you only need to complete a simple identity verification process, or KYC, to access this financial world with native yield-generating capability. With its leading risk control system and ample liquidity, Bitunix ensures that users can smoothly buy or sell USDe even during periods of market volatility. The platform has publicly released Proof of Reserves, or PoR, allowing users to transparently verify asset status. Choosing Bitunix is the most convenient and reassuring option for you.

6. Timeline of Major USDe Milestones

Disclaimer

This article is not intended to provide:

(i) investment advice or investment recommendations;

(ii) an offer or solicitation to buy, sell, or hold digital assets; or

(iii) financial, accounting, legal, or tax advice.

Digital assets (including stablecoins and NFTs) involve high risk and may be highly volatile. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. For your specific circumstances, consult your legal, tax, or investment professionals. You are responsible for understanding and complying with all applicable local laws and regulations.

About Bitunix

Bitunix is a global cryptocurrency derivatives exchange trusted by over 3 million users across more than 100 countries. At Bitunix, we are committed to providing a transparent, compliant, and secure trading environment for every user. Our platform features a fast registration process and a user-friendly verification system supported by mandatory KYC to ensure safety and compliance. With global standards of protection through Proof of Reserves (POR) and the Bitunix Care Fund, we prioritize user trust and fund security. The K-Line Ultra chart system delivers a seamless trading experience for both beginners and advanced traders, while leverage of up to 200x and deep liquidity make Bitunix one of the most dynamic platforms in the market.

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