USDe Maintains $1 Peg with Market Cap Rising Above $6 Billion
Ethena's synthetic stablecoin USDe has maintained stability amid recent market volatility, primarily influenced by trade war threats from the White House. Key points include:
- USDe is not backed by fiat assets at a 1:1 ratio but maintains its $1 peg through collateralization and hedged cash-and-carry trades.
- The stablecoin traded around its $1 peg on Monday, with brief dips to $0.999.
- Market cap increased to over $6 billion, up from approximately $5.7 billion a week prior.
- Funding rates remained positive, indicating slight bullish sentiment as long position holders pay fees to short position holders.
- USDe offers an annual percentage yield (APY) of 10%, consistent over the last month.
- The reserve fund for USDe has grown to $46.6 million by Q4 2024, addressing previous concerns about sustainability.
Arthur Hayes, CIO at Maelstrom, has increased exposure to USDe, suggesting it as a refuge for investors amid anticipated declines in Bitcoin value. He plans to use liquidity from USDe to capitalize on potential market dips.