Ethena community to vote on proposal to launch crypto exchange on USDe

The Ethena community is preparing to vote on a proposal to integrate Ethereal, a decentralized exchange built on USDe, into Ethena’s reserve management system.

The Ethena Labs community will soon vote on a proposal to integrate Ethereal, a decentralized exchange built on the Ethena Network, into its reserve management system, with the aim of expanding the “usefulness and demand” of USDe, a synthetic stablecoin developed by Ethena Labs.

A new offer regarding Ethena management was made a few hours ago

Ethereal Exchange is seeking community approval to launch a new spot and perpetual exchange built on USDe and integrated with the Ethena hedging engine and liquidity

Their offer includes a 15% commitment…

— Ethena Laboratories (@ethena_labs) September 30, 2024

The proposal, submitted by “Fells0x” on September 30, seeks approval for Ethereal to manage spot and perpetual futures positions backing USDe. In return, (ENA) token holders will be entitled to receive 15% of future Ethereal governance tokens if the proposal is accepted.

The proposal states that Ethereal V1, which is expected to be released on the testnet in Q4, aims to deliver centralized exchange-level performance while maintaining “full self-custody.” According to the proposal, the exchange’s architecture “will be able to process 1 million transactions per second with latency below 20 ms.”

“The launch of Ethereum will provide a blueprint for other applications built using USDe on the Ethena Network and will help support Ethena’s transformation from an asset issuer to a financial innovation platform.”

Fells0x

The proposal also outlines potential future synergies, including decentralized lending and borrowing applications built on USDe.

The offer follows Ethena’s recent announcement of UStb, a BlackRock-backed stablecoin that aims to address community concerns regarding USDe. Backed by BlackRock USD Institutional Digital Liquidity Fund and private lender Securitize, UStb was introduced as a hedge against systemic risks in negative funding rate scenarios.

People like Andre Cronje have previously expressed concerns about USDe, likening it to the defunct TerraUSD. However, Ethena maintained that such risks did not materialize in USDe’s six months of operation.

Pending approval, Fells0x has requested technical support from the Ethena Foundation and Risk Committee to ensure the seamless integration of Ethereal into Ethena’s hedging strategies. Although no specific date has been set, the vote is expected to take place in the coming months.