Ethena Raises $6.5 Million to Develop Crypto-Native Yield-Bearing Stablecoin on Ethereum Blockchain

Ethena, an Ethereum stablecoin protocol, has successfully raised $6.5 million in its seed round, with Dragonfly Capital leading the funding effort.

Ethena aims to create a stablecoin that operates independently from the traditional financial system, inspired by Hayes’ article on constructing a stablecoin using delta-neutral techniques and on-chain collateral. They plan to implement the concept of the “Nakadollar,” originally proposed for Bitcoin, on the Ethereum blockchain to create a crypto-native yield-bearing stablecoin.

Ethena envisions a vast market opportunity, estimating it to be over $130 billion for their permissionless savings return product. The protocol intends to issue two financial instruments in phases: first, the usde stablecoin product based on on-chain collateral derivatives, expected to launch by Q3 2023, and later, the internet bond, a globally accessible and permissionless crypto savings instrument leveraging staked Ethereum deposits and usde.

Dragonfly’s general partner, Tom Schmidt, emphasizes the significance of a decentralized, stable, and capital-efficient stablecoin as the usage of stablecoins for savings and remittance purposes continues to grow worldwide. Schmidt expresses excitement about partnering with Ethena to bring their visionary stablecoin to life.

Clever Robot News Desk 24^th July 2023