Ethena USDe

Ethena USDe (USDE) is a synthetic dollar token designed to operate on the Ethereum blockchain as an ERC-20 cryptocurrency. It serves as the foundational currency of the Ethena Protocol, facilitating various functions within the Ethena Finance ecosystem​​. The protocol supports the creation and redemption of a delta-neutral synthetic dollar, which is touted as the first fully-backed, scalable, and censorship-resistant form of money in the crypto space.

USDe is primarily used as a stable synthetic dollar that integrates a variety of financial mechanisms to maintain its peg to the USD and provide a stable, scalable, and accessible financial system. The token leverages staked Ethereum (ETH) as collateral, employing a delta hedging strategy to manage the price stability against ETH's volatility. This approach helps in minimizing the fluctuations of the backing asset's price, thereby maintaining the synthetic USD value of the collateral relatively stable​​​.

Additionally, USDe underpins the 'Internet Bond' which combines the yield from derivatives markets and staked ETH to generate high returns, thereby democratizing investment opportunities and conceptually redefining savings in the digital age​.