As a seasoned researcher with years of experience delving into the world of blockchain technology and decentralized finance, I find myself intrigued by the rapid growth and success of Ethena Labs’ latest venture – the USDtb stablecoin. Having closely followed the evolution of stablecoins such as Tether (USDT) and USD Coin (USDC), it is fascinating to witness a new player entering the scene with such momentum.
This past Monday, Ethena Labs, a company specializing in decentralized finance, unveiled its new USDtb stablecoin alongside Securitize and using BlackRock’s BUIDL platform. Remarkably, the stablecoin’s value reached an impressive $65 million in total value locked (TVL) on its debut day.
Ethena’s freshly introduced USDtb digital currency functions in a manner similar to Tether (USDT) and USD Coin (USDC), as it is backed by real cash or its equivalent at a ratio of one unit for each dollar. This stablecoin has been specifically designed to bolster users of Ethena’s primary product, USDe, during times when market fluctuations are significant. In reference to the development, the company stated:
Ethena can lock in the hedges associated with USDe and shift its supporting assets towards USDtb, aiming to reduce potential risks even more.
As a passionate crypto investor, I’m thrilled to express my admiration for the newly launched USDt stablecoin. I firmly believe that within a month from its debut, this innovative tokenized treasury product could very well establish itself as the largest in the market. Kudos to José Maria Macedo, co-founder of Delphi Labs, for his insightful prediction.
Likewise, Seraphim Czecker, who leads growth at Ethena, thinks that USDtb could grow to reach a value of $100 billion. He also mentioned that the company is skillfully managing capital during downturns, while setting a minimum Annual Percentage Yield (APY) linked to the T-bill rate.
BlackRock’s U.S. Dollar Institutional Digital Liquidity Fund is responsible for 90% of the backing for the USDtb stablecoin. A member of Ethena’s committee, Block Analiticia, stated that other stablecoins like USDC will provide the remaining 10%, ensuring extra liquidity during weekends or when U.S. Treasury bill markets are not functioning. This means that the reserves for USDtb will have additional support from these stablecoins to maintain their stability.
USDtb Stablecoin to Further Boost Growth of the Ethena Ecosystem
In October, the fundamental code of USDt stablecoin underwent thorough examinations by Pashov, Quantstamp, and Cyfrin. According to reports, these auditing firms discovered no significant or moderate problems in the asset.
In late September, the USDtb proposal was given a nod by Ethena’s risk committee. However, it wasn’t until recently that the specifics of the agreement were finally settled.
The recent launch coincides with Ethena’s USDe stablecoin overtaking Dai to secure the third position among stablecoins globally. Nevertheless, it is still significantly smaller compared to USDT ($140.38 billion) and USDC ($42.38 billion), as indicated by DefiLlama data, which shows that USDe’s market cap stands at $5.87 billion. Here are some key statistics for both USDT and USDC:
In recent times, the environment surrounding Ethena (ENA) has experienced robust expansion, leading to approximately 100% increase in its price over the past month. Presently, ENA is being traded at $1.15, with a market capitalization of around $3.41 billion and Total Value Locked (TVL) surpassing $6 billion.
Read More
- W PREDICTION. W cryptocurrency
- ZK PREDICTION. ZK cryptocurrency
- What Are Silo 18’s Tunnels Connected To? Juliette’s Silo 17?
- XVG PREDICTION. XVG cryptocurrency
- Is there preload for Path of Exile 2? Yes, but with a few caveats
- ARB PREDICTION. ARB cryptocurrency
- DEXE PREDICTION. DEXE cryptocurrency
- XRD PREDICTION. XRD cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- Over $500 Million Wiped Out From The Market As Bitcoin Price Fluctuates Heavily
2024-12-17 12:30