The Ethena group is about to vote on a proposal to combine Ethereal, a decentralized alternate constructed on USDe, into Ethena’s reserve administration system.
The Ethena Labs group will quickly vote on a proposal to combine Ethereal, a decentralized alternate constructed on Ethena Community, into its reserve administration system in a bid to increase “utility and demand” for USDe, an artificial stablecoin developed by Ethena Labs.
The proposal, submitted by “Fells0x” on Sept. 30, seeks approval for Ethereal to handle spot and perpetual futures positions backing USDe. In return, (ENA) token holders stand to obtain 15% of any future Ethereal governance tokens ought to the proposal cross.
Ethereal V1, anticipated to launch on testnet in This fall, goals to ship centralized exchange-level efficiency whereas sustaining “complete self-custody,” the proposal reads. Based on the proposal, the alternate’s structure shall be “capable of processing 1 million operations per second with sub-20ms latency.”
“Ethereal’s launch will provide the blueprint for other applications built using USDe on the Ethena Network, helping to drive Ethena’s transformation from an asset issuer to a platform for financial innovation.”
Fells0x
The proposal additionally outlines potential future synergies, together with decentralized lending and borrowing functions constructed on prime of USDe.
The proposal follows Ethena’s latest announcement of UStb, a BlackRock-backed stablecoin geared toward addressing group considerations round USDe. Supported by the BlackRock USD Institutional Digital Liquidity Fund and personal lender Securitize, UStb was launched as a safeguard towards systemic dangers in unfavorable funding fee situations.
Figures corresponding to Andre Cronje had beforehand expressed considerations over USDe, likening it to the defunct TerraUSD. Nevertheless, Ethena has maintained that no such dangers have materialized in USDe’s over six months of operation.
Pending approval, Fells0x has requested technical assist from the Ethena Basis and Danger Committee to make sure easy integration of Ethereal into Ethena’s hedging methods. The vote is anticipated within the coming months, although no particular date has been set.