Ethena is the issuer of USDe, a synthetic dollar that operates independently of the traditional banking system. Instead of holding cash in a bank, the protocol utilizes Delta Hedging: for every $1 of crypto collateral deposited, the protocol opens a corresponding $1 short position. This mechanism is designed to capture the "funding rate" (yield) from derivatives markets while keeping the stablecoin's value steady.

The Ethena ecosystem has evolved to offer both synthetic and real-world asset (RWA) backed products:

UStb Launch (BlackRock Backed): In partnership with Securitize, Ethena launched UStb, a stablecoin fully backed by BlackRock’s BUIDL fund (tokenized US Treasuries). UStb serves as a "safety valve" for the ecosystem; if funding rates on USDe turn negative, the protocol can automatically reallocate backing into UStb to protect the peg.

Jupiter Partnership (JupUSD): In Q4 2025, Ethena partnered with Jupiter (the largest Solana aggregator) to launch JupUSD. This Solana-native stablecoin is built on Ethena's infrastructure but is tailored specifically for the Jupiter ecosystem, marking Ethena's major expansion beyond Ethereum.

Fee Switch Activation (Sept 2025): The Ethena Risk Committee approved the activation of the Fee Switch, directing a portion of protocol revenue to sENA (Staked ENA) holders. This aligns the incentives of governance participants with the protocol’s financial performance.

The ENA token governs the risk and economic parameters of the protocol:

Governance: ENA holders vote on adding new collateral types (e.g., SOL, BTC), approving new exchange venues, and managing the insurance fund size.

Staking (sENA): Users stake ENA to receive sENA. This liquid staking token can be used across DeFi (e.g., as collateral in Pendle or Aave) while accruing voting power and potential protocol rewards.

Cross-Chain Governance: Through LayerZero integration, ENA governance is accessible across supported chains, including Ethereum, Arbitrum, and Solana.

Core Product: USDe (Synthetic Dollar) & UStb (RWA Stablecoin)

Mechanism: Delta-Neutral Hedging (Cash & Carry Trade)

Token Standard: ERC-20 (Ethereum), SPL (Solana via OFT)

Total Supply: Fixed cap of 15 Billion ENA