Ethena Labs Plans to Integrate Solana (SOL) as a Collateral Asset to Enhance the Support of Its Synthetic Stablecoin, USDe

Under examination by the Risk Committee, the idea seeks to apply the same hedging method now applied for Bitcoin (BTC) and Ethereum (ETH) perpetual futures.

Synthetic stablecoin USDe, powered by Ethena Labs, is set to integrate Solana (SOL) as a new collateral asset, aiming to enhance the stability of the stablecoin.

The proposal, currently under review by the Ethena Risk Committee, will see SOL used as a hedge for USDe in a manner similar to the current application of BTC and ETH perpetual futures.

This integration will introduce a new layer of protection for USDe, utilizing SOL collateral to help stabilize the value of the stablecoin and provide a strong and scalable foundation for the stablecoin within the decentralized finance (DeFi) network.

Ethena Labs’ Initiative to Strengthen USDe with Solana Integration, Liquid Staking AssetsThe move is expected to capitalize on the significant open interest in SOL futures, which is estimated to be in the range of $2-$3 billion.

By integrating Solana, Ethena aims to diversify its overall collateral pool, which is currently dominated by BTC and ETH.

The initial phase of this integration will involve a gradual introduction of SOL, with a target allocation of $100-$200 million, or 5-10% of Solana's open interest in the market.

According to the Ethena team, this approach is preferred due to better liquidity compared to BTC and ETH futures and more favorable financing rates.

In addition to SOL, the proposal also includes its liquid staking variants, such as BNSOL (Binance Liquid Staked SOL) and bbSOL (Bybit Liquid Staked SOL), which are expected to comprise about one-third of the total SOL allocation.

This aligns with Ethena's existing strategy for ETH liquid staked tokens (LSTs), which have become a crucial component of the protocol's collateral system.

Ethena aims to leverage these assets to capitalize on Solana's burgeoning DeFi ecosystem and build a stronger and more diverse support network for USDe.

The development follows Ethena's previous launch of USDe on Solana in August via the LayerZero protocol, highlighting its ongoing efforts to expand the stablecoin's cross-chain capabilities and utility.

Meanwhile, as reported by CNF, Ethereal Exchange has proposed a collaboration with Ethena to integrate USDe.

The exchange aims to match the performance of centralized exchanges while prioritizing self-custody, offering a 15% token allocation to ENA holders upon approval, with a transaction capacity of 1 million per second. This potential partnership underscores Ethena's initiatives to solidify its presence in the competitive stablecoin landscape.

As we covered, Ethena has also partnered with Coinbase Prime for custody services, integrating USDC and self-custodial wallet functionalities to streamline processes. The protocol aims to enhance the overall user experience by integrating the Coinbase Prime Web3 Wallet, optimizing the efficiency of its minting and redeeming mechanisms.

At the time of writing, ENA's native token is trading at $0.4211, up 9.11% over the last 24 hours, ranking it among the top five gainers in the market today.