Ethena Proposes New DEX to Enhance USDe Growth

Ethena Labs, the developer of the USDe synthetic dollar, announced a proposal to launch a decentralized exchange (DEX) called "Ethereal" to support USDe growth.

On September 30, a member of the Ethena community , known as “Fells0x” proposed the creation of Ethereal, with plans to integrate it into Ethena’s reserve management system.

Ethereal V1 will process spot and perpetual futures positions tied to USDe, with the goal of increasing its utility and demand. If the proposal is approved, 15% of future Ethereal management tokens will be made available to the community.

The first version of Ethereal is expected to go live on the test network in the fourth quarter of 2024. DEX will aim to provide the speed and performance of centralized exchanges while ensuring that users retain full control of their assets. The platform is designed to process up to 1 million. transactions per second with latency below 20 ms and will enable decentralized lending and borrowing using USDe.

This initiative comes at a time when USDe is facing increased competition in the stablecoin market, which has affected its supply. Until recently one of the fastest-growing stablecoins, USDe’s market capitalization has fallen by more than $1 billion in the past three months, currently standing at $2.54 billion. Ethena’s management token, ENA, has also seen a significant decline in value. Despite these challenges, USDe has maintained its peg to the dollar, and Ethena Labs will hold a vote on a snapshot of the proposal later today.