Ethena Expands USDe Reserve Strategy to Include Binance Tokenized Stocks and Stock Perpetual Contracts

BlockBeats news, September 25: Ethena will expand the basis trade strategy behind USDe by using Binance's bStocks tokenized US equities as spot collateral assets and hedging the related exposure through Binance equity perpetual contracts.

The Ethena Risk Committee has previously approved the inclusion of tokenized equity basis trades into the USDe allocation strategy. Ethena previously built USDe's delta-neutral yield strategy primarily by holding spot crypto assets and hedging with derivatives.

Data shows that USDe's current supply is approximately $4.9 billion. Ethena said that Binance equity perpetual contracts currently have open interest exceeding $2.9 billion, with a month-over-month compound growth rate of 105% year to date, and equity basis annualized yield averaging 3.56% over the past 6 months.

Ethena founder Guy Young said this is the most important expansion of USDe's funding source mechanism since its launch. Ethena expects that as more traditional financial assets move onchain, future opportunities in the equity perpetual contract market may significantly exceed those in the crypto perpetual contract market.