Ethena Labs, the developer behind the Synthetic Dollar Protocol, is revamping the tokenomics of its native asset, ENA, in order to enhance the token’s functionality. The goal of Ethena is to offer a crypto-native alternative to traditional banking systems by introducing a synthetic dollar known as USDe. Additionally, the protocol features a dollar-based savings tool called “the Internet Bond.”
At present, users can lock their ENA tokens within Ethena to potentially increase future rewards, or they can lock them in Pendle, a DeFi protocol that enables the tokenization and trading of future yields. Ethena Labs plans to introduce generalized restaking pools for staked ENA in the next phase of the token.
The primary use case for this update is to ensure economic security for cross-chain transfers of USDe using the LayerZero DVN messaging system. This is just the initial step in a series of infrastructure enhancements for the upcoming Ethena Chain and financial applications that will be developed on top of the chain, all of which will benefit from the restaked ENA modules.
Moving forward, any user who receives ENA tokens through an airdrop will need to lock at least 50% of the tokens in Ethena, Pendle, or the generalized restaking pools for staked ENA. Earlier this year, Ethena successfully raised $14 million in a seed extension round, with investors including BitMEX founder Arthur Hayes, Franklin Templeton, Galaxy Digital, and Binance Labs.
Currently, the ENA token is trading at $0.653. Stay updated by subscribing to receive email alerts directly to your inbox. Don’t miss out on the latest news and price action by following us on X, Facebook, and Telegram.
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