Ethena Labs has announced the launch of its stablecoin, USDe, on the Solana network as of August 7. This expansion allows borrowers to use Solana (SOL) as collateral for USDe loans, pending approval from Ethena (ENA) token holders. The stablecoin is now integrated with several Solana-based applications, including KaminoFinance, Orca, Drift, and Jito.
Ethena Labs, the developer behind USDe, made the announcement. USDe, which was previously exclusive to the Ethereum network, allowed users to take loans using Ether (ETH) and Bitcoin (BTC) as collateral. The Solana launch was communicated through the X social media platform by the Ethena Labs team.
The announcement was made on August 7, marking the official launch of USDe on Solana. A vote by ENA token holders on allowing SOL as collateral for USDe loans is expected to occur next week.
USDe is designed to maintain a peg to the US dollar, backed by Lido Staked Ethereum (stETH) and short positions in the Ethereum perpetual futures market. This dual backing generates yield from Ethereum staking rewards and negative funding rates on its short positions. Users can earn Ethena Sats, which can be exchanged for ENA tokens, by providing USDe liquidity to integrated exchanges or using the stablecoin as collateral for margin trades.
The transition to Solana represents a significant milestone for USDe, which has been confined to the Ethereum network until now. The stablecoin’s integration with decentralized finance protocols such as Kamino Finance, and decentralized exchanges like Orca and Drift Protocol, increases its utility. It will also be available on the restaking protocol Jito once it becomes operational.
Ethena Labs plans to initially proceed cautiously with allowing SOL as collateral. The protocol will not immediately start shorting SOL due to the lack of extensive historical data on funding rates compared to ETH. However, the team anticipates gradually issuing short positions against SOL as governance decisions are made and funding conditions are monitored.
The launch of USDe on Solana and its integration with various Solana applications enhance the stablecoin’s functionality and accessibility, potentially attracting more users to the Solana ecosystem. This move underscores Ethena Labs’ dedication to broadening its offerings and providing versatile financial tools across different blockchain networks. The introduction of USDe on Solana offers a new high-yield, relatively safe asset option for users, further solidifying its position in the decentralized finance space.
