Ethena Labs reached $290.2 million in complete protocol income on July 9, trailing solely Tether, Circle, and Sky amongst stablecoin issuers.
Token Terminal information present that the stablecoin issuer reached $100 million in cumulative income 251 days after its launch, making it the second-fastest protocol to cross this threshold.
Each day charges averaged $3.1 million throughout the previous month as merchants continued to mint and hedge the synthetic-dollar token USDe. Ethena’s path to nine-figure income took 251 days, quicker than Uniswap’s 980-day dash in 2020 however slower than memecoin launchpad Pump.enjoyable, which hit the mark in 217 days late final 12 months.
Core revenue is generated by carrying lengthy spot and brief perpetual futures positions throughout a number of exchanges, a delta-neutral technique that converts funding-rate spreads into protocol earnings credited to stakers of the yield token sUSDe.
Again-end Treasury information reveals that 94% of backing belongings stay on centralized venues, the place Ethena’s automated execution system balances collateral and hedges in actual time. The remaining collateral is held in liquid-staking tokens to seize staking rewards whereas sustaining a impartial web publicity.
The protocol redirects 20% of gross charges to purchase ENA on the open market, a mechanism that has burned 58 million tokens since February, in accordance with on-chain trackers.
SEC dialogue on fee stablecoin standing
Ethena’s Normal Counsel, Zach Rosenberg, and attorneys from Morrison Cohen met with the US Securities and Alternate Fee’s (SEC) Crypto Job Drive on July 1 to request readability on “artificial {dollars},” equivalent to USDe.
A gathering memorandum launched by the SEC reveals that the workforce argued that USDe features as a fee instrument reasonably than a safety as a result of holders don’t depend on the issuer’s efforts for revenue and since redemption rights monitor underlying reserves, not the issuer’s balance-sheet efficiency.
The submission cites two pending payments, the GENIUS Act and the STABLE Act, that might carve out a federal licensing lane for fee stablecoin issuers. Ethena instructed workers that USDe falls exterior each drafts as a result of the token can fluctuate barely round $1 and carries no authorized promise of par redemption, leaving it in regulatory limbo.
Firm representatives urged the fee to deal with artificial {dollars} as a separate class and to coordinate with financial institution regulators if Congress finalizes a fee stablecoin framework.
Ethena stays barred from US retail distribution pending formal steerage, so new greenback inflows primarily come from offshore funds and market-making desks that hedge their publicity on centralized exchanges.
The protocol’s income tempo slowed in Might when common perpetual funding spreads compressed under an 8% annualized fee. Nonetheless, charge consumption rebounded to $3.8 million per day in early July as renewed long-bias returned the premise to double-digit territory.
Ethena’s request for formal SEC suggestions stays beneath evaluate, in accordance with the assembly log.
