Ethena is an innovative startup based in Portugal, aiming to pioneer new developments in the realm of algorithmic stablecoins. Its core product, USDe, is an Ethereum-based synthetic dollar that offers enhanced scalability, stability, and resistance to censorship, setting it apart from traditional stablecoins. USDe is more than just a stablecoin; it’s a yield-bearing synthetic asset that leverages innovative mechanisms to maintain its peg to the US dollar while generating returns.

The issuance of USDe is backed by user-provided collateral, with price exposure hedged through shorting Ethereum perpetual swaps, ensuring the stablecoin maintains its 1:1 peg to the US dollar even in volatile market conditions. Learning from the failures of previous projects like Terra, Ethena has designed a robust risk management framework to avoid common pitfalls of algorithmic stablecoins, creating a more resilient system.

In addition to USDe, Ethena is also developing an innovative financial product known as the Internet Savings Bond, which is denominated in USD. This bond combines staked Ethereum (stETH) with derivative market yields, providing investors with a secure way to earn passive income. By lowering the barriers to entry, Ethena enables everyday users to participate in the digital asset economy and enjoy returns generated from these cutting-edge financial tools.

Ethena's mission extends beyond simply developing a stablecoin; it aims to redefine the use of digital currencies and savings mechanisms by blending technological innovation with new financial instruments, driving the adoption and growth of decentralized finance (DeFi) on a global scale.