Ethena Raises $6.5 Million to Develop an Ethereum-Based, Banking System Independent Stablecoin

Ethena, a protocol that seeks to physique a banking strategy autarkic stablecoin, has announced that it has raised $6.5 cardinal successful its effect round. The round, led by Dragonfly, aims to assistance contented Ethena’s decentralized stablecoin merchandise successful Q3 2023, which was inspired by an nonfiction written by erstwhile Bitmex CEO Arthur Hayes.

Stablecoin Protocol Ethena Raises $6.5 Million successful Seed Funding Round

Ethena, an Ethereum stablecoin protocol, has raised $6.5 cardinal successful its effect round. The backing circular led by Dragonfly Capital besides had the information of erstwhile Bitmex CEO Arthur Hayes and immoderate derivatives exchanges specified arsenic Deribit, Bybit, Okx, Gemini, and Huobi. Ethena’s extremity is to bring to fruition a stablecoin that has nary transportation with the accepted fiscal system.

The protocol was inspired by the “Dust connected Crust” Arthur Hayes article, wherever helium explains however a stablecoin tin beryllium constructed utilizing delta-neutral techniques, derivatives, and onchain collateral. Ethena uses the conception of the “Nakadollar,” which Hayes projected utilizing Bitcoin, and applies it to Ethereum instead, looking to crook this cryptocurrency “into the archetypal crypto-native yield-bearing stablecoin which is not reliant connected the banking system.”

To Ethena, this stablecoin has a imaginable marketplace of much than 130 billion, fixed that they presumption their permissionless savings instrumentality merchandise arsenic “the largest marketplace accidental that crypto tin supply for the world.”

Usde and the Internet Bonds

Ethena projects to contented their fiscal instruments successful 2 phases. The archetypal 1 includes the rollout of usde, an on-chain collateral derivatives-based stablecoin product, estimated to beryllium disposable by Q3 2023, utilizing the funds raised during this round.

A aboriginal signifier volition see issuing what Ethena calls the net bond. The net enslaved is projected to behave arsenic a accepted U.S. treasury without being linked to immoderate cardinal slope oregon fiscal institution, gathering connected staked Ethereum deposits and usde, processing “the archetypal globally accessible and permissionless crypto savings instrument.”

Dragonfly wide spouse Tom Schmidt reinforced the relevance of a genuinely decentralized, stable, and capital-efficient stablecoin merchandise owed to the maturation of the usage of stablecoins astir the satellite for savings and remittance-related uses.

Schmidt stated:

Ethena has a breakthrough plan that remedies these issues portion besides benefiting a wide user-base. We’re thrilled to beryllium partnering with them to bring their imaginativeness to life.

What bash you deliberation astir Ethena and its extremity of creating a banking strategy autarkic stablecoin? Tell america successful the comments conception below.