Wintermute pushes Athena’s rate change to benefit sENA token holders

Crypto market maker and liquidity provider Wintermute has proposed a fee exchange framework for the Athena protocol.

The main purpose of this move is to establish revenue alignment with SENA token holders and clarify the revenue structure of the Athena protocol.

Wintermute quota change proposal

According to Wintermute, sENA holders (those who have staked their Athena tokens) are not directly benefiting from Athena’s revenue growth despite the protocol’s success with the USD-pegged stablecoin, USDe. The latest proposal, presented to the Risk Committee on Wednesday, suggests enabling a future revenue allocation to sENA to align token holders with Athena’s financial performance.

While the proposal refrained from providing specific figures for revenue allocation or a detailed fee-shifting model, Wintermute recommended that Athena focus on establishing the “optimal form” for fee-shifting, particularly given the supply growth and USDe yield competitiveness for staked assets.

Wintermute also suggests establishing a roadmap with clear milestones, such as circulation and revenue goals, before implementing revenue sharing. To support this, they are requesting full disclosure from the Athena Foundation on how protocol revenues are currently distributed. Any final decision on the proposed changes would need to be approved by a vote of ENA and sENA holders.

“We kindly request that the Foundation clarify whether to date 100% of Athena protocol revenues have been allocated or retained solely for the benefit of the protocol. We also request confirmation that future revenues will continue to be managed within the Athena protocol , ensuring that they benefit from the protocol and remain governed by ENA/sENA.”

USDe of Athena

Athena is a synthetic dollar protocol on Ethereum that issues the stablecoin USDe, designed as a scalable and censorship-resistant digital currency pegged to the USD.

USDe has gained steam this year, offering returns of up to 17%, prompting comparisons to Terraform Labs’ UST, the controversial algorithmic stablecoin that collapsed and sparked a broader crypto crisis more two years old However, market experts assured that USDe’s performance mechanism is “unique”.

Today, USDe’s market cap has grown to $2.83 billion, fueled by a surge in the broader crypto market.

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