Ethena Labs Raises $14M Funding at $300M Valuation, Publicly Launches USDe Stablecoin
In Brief
Ethena Labs raised $14M funding to expand the team and accelerate the development of its publicly launched Ethereum-backed USDe stablecoin.
Developer of stablecoin USDe based on Ethereum (ETH), Ethena Labs raised $14 million in a seed extension funding round led by DragonFly, Bybit, OKX, Deribit and Gemini with participation from Brevan Howard Digital, Franklin Templeton, Galaxy Digital, Hashed, Nic Carter, and his firm Castle Island Ventures.
The company plans to allocate the new capital to facilitate the team expansion, recruiting quantitative engineers and business development executives in the Asian region. The latest investment brought the company’s total valuation to $300 million.
Ethena Labs is focused on developing USDe stablecoin. USDe operates on the Ethereum platform and is collateralized by derivatives. Its approach to maintaining price stability involves “delta-neutral” hedging across centralized and decentralized platforms. In other words, USDe is supported by combining a long-staked ETH position and a short ETH position.
According to Ethena Labs, the employed approach ensures that losses or gains from either position are balanced, resulting in a return profile denominated in US dollars. The concept behind this is analogous to conventional cash and carry strategies involving treasuries and futures.
Additionally, Ethena Labs offers another product–a dollar-denominated savings instrument called an “internet bond.” This bond allows for value accrual through sUSDe, the staked version of USDe, capturing both the natural yield from staked ETH and the basis in futures markets. According to the company, the bond has maintained an annualized yield of 12-20% over the past two months.
Regarding other complete intricate details of the funding, the company clarified on X that correct statistics of the round will be shared soon.
Ethena Labs Publicly Launches USDe
Along with receiving the investment, the company officially announced the launch of USDe stablecoin to the public after a stealth launch last year, rapidly gaining over $224 million in total value locked (TVL).
To create USDe, Ethena Labs lets users deposit US dollars, Ethereum, or liquid staking tokens as collateral.
Founded in 2023, Portugal-based Ethena Labs envisions USDe as a transformative tool for user engagement with cryptocurrency market. Compared to its traditional counterparts, the stablecoin presents several advantages providing an option for investors seeking exposure to the cryptocurrency ecosystem without the concern of price volatility. Recently, the platform received support from Binance Labs after participating in its Season 6 incubation program.
The new investment is set to accelerate the expansion and growth of Ethena Labs operations, further contributing to the development of USDe and establishing its robust presence in the cryptocurrency market.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
