The site has attracted more than 350,000 users thanks to its impressive 67.2% return on its USDe synthetic dollar.
According to a post by Ethena Labs’ Head of Growth, Seraphim Czecker, on March 8th, Ethena has broken through as a frontrunner in the decentralized application (DApp) field, amassing a daily total income of over $6.8 million in the previous week.
During the same time period, Tron and Ethereum produced daily sales of $38.6 million and $182.5 million, respectively, putting Ethena close behind them.
According to DefiLlama statistics, market capitalization for USDe has jumped 43% in the previous week and an astounding 409% in the past month, hitting $840 million, indicating a significant growth in USDe value.
Many investors were worried when Ethena Labs released its USDe synthetic dollar to the public mainnet on February 19. This was because the APY was 27.6%, which was much higher than anything the industry has seen before.
The algorithmic stablecoin TerraUSD (UST) and its companion protocol, Anchor Protocol, which had promised a 20% payout before its collapse in May 2022, were the major antecedents to this debut.
Ethena Labs creator Guy Young addressed concerns about USDe’s high yield in a February 22 interview with Cointelegraph, focusing on the industry’s growth after Terra’s collapse.
“The quick mention of Terra Luna was basically a knee-jerk response that people had to the yield itself,” Young said, underscoring the need for skepticism and further research. “We should react skeptically and attempt to figure out whether [protocols] are fragile in the beginning instead of allowing them to develop too large if they are, so it’s good that people have acted in this manner.”
The fact that the yield creation techniques of USDe, such as staking returns and shorting eternal future contracts, are publicly verifiable, he said, further distinguishes it from the unsuccessful Anchor protocol.
Dragonfly recently sponsored a $14 million financing round that supported the creation of Ethena’s synthetic dollar. The cash was hefty.
Binance Labs, Gemini, Bybit, Mirana Ventures, OKX Ventures, and Deribit were among the notable supporters in a previous $6 million financing round in 2023, demonstrating the platform’s promising future and investors’ faith in its ability to pioneer decentralized finance (DeFi).
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