CryptoSlate
Ethena is moving its synthetic dollar USDe into equity perpetual futures, chasing funding rates of roughly 14% to 17.5% versus Bitcoin perp funding averaging just 2.2% this year. Founder Guy Young announced the expansion on Aug. 28, citing open interest in equity perps that has climbed from under $1 billion in March to about $6.2 billion.
The pivot lands as USDe sits near $4.04 billion in supply, less than a third of its roughly $15 billion peak from last year. Crypto basis positions, the trade that defined USDe at launch, now back only about 13% of reserves. DeFi lending holds $1.26 billion (30.8%), liquid stablecoins 32%, real-world assets 12.3%, and institutional lending 11.8%, with yields from 3.1% to about 7%.
Why it matters
The expansion widens Ethena's basis-trade universe from about $2.5 trillion of crypto to more than $120 trillion of equities, running on the same hedging infrastructure that powered USDe through its 2025 peak. Young expects sector open interest and volume to surpass crypto perpetuals across major venues within two years. The structural appeal is diversification: equity perp funding has shown limited correlation with crypto funding, so the trade can stay attractive when crypto leverage cycles cool.
Market impact
Urgency now sits with the buyback threshold. A governance proposal unveiled Aug. 27 would direct 95% of net revenue from USDe savings, white-label stablecoins, and the upcoming Ethena X launch toward ENA buybacks once USDe reaches $7.5 billion, with the share scaling higher at $10B, $15B, and $20B. At current supply, USDe needs to add about $3.46 billion, roughly 86% growth, before the program activates.
ENA has already moved ahead of that recovery. The token traded near $0.163 on Aug. 28, up 11.6% in 24 hours and nearly 99% over 30 days, with volume above $2 billion. Risk Committee backtests pegged buybacks at roughly $52.7 million annually under historical conditions once active.
Frequently asked questions
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Why is Ethena moving USDe into equity perpetual futures?
Ethena is extending its basis-trading strategy into equity perpetuals to capture funding rates of roughly 14% to 17.5%, versus just 2.2% on Bitcoin perps this year, while broadening its collateral universe from $2.5T of crypto to over $120T of equities.
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How much supply does USDe need to recover to trigger ENA buybacks?
USDe needs to climb from about $4.04 billion to $7.5 billion in circulation, roughly $3.46 billion or 86% growth, before the proposed 95% revenue-to-buyback program activates under the Aug. 27 governance proposal.
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How big is the equity perpetual futures market Ethena is targeting?
Open interest in equity perpetuals has surged from under $1 billion in March to about $6.2 billion as of late August. Young said RWA perp volume on Hyperliquid already exceeded half of crypto volume last month, and on Binance it ran roughly twice BTC-USDT volume.
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What is backing USDe right now?
Per the Ethena Transparency Board, crypto basis positions back about 13% of USDe, DeFi lending holds $1.26 billion (30.8%), liquid stablecoins 32%, real-world assets 12.3%, and institutional lending 11.8%, generating yields from 3.1% to roughly 7%.
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How has the ENA token responded to the equity perp push?
ENA traded near $0.163 on Aug. 28, up 11.6% in 24 hours and nearly 99% over 30 days, with daily volume above $2 billion as investors priced in the proposed fee switch and the broader pivot into equity perpetuals.
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