How Ethena is attacking USDC on Hyperliquid
Over $4B of USDC has been deployed on Hyperliquid, allowing Circle to generate ~$20M in profit. This amount would be enough to invest in ~10 pre-seed/seed projects within the ecosystem.
Ethena has decided to combat this by creating HyENA – a PerpDEX built on HIP-3. Its key feature will be the role assigned to USDe.
USDe is becoming the stablecoin that serves as a collateral for PerpDEX trading. This has important implications:
1. USDe generates 5% APY yield for idle assets, as well as while you're trading.
2. Provides an additional source of income for HLPe – funding rates + market making + liquidation fees.
3. Ability to purchase YT on Pendle in the near future.
This is direct competition against Circle, which is an extension of the Stablecoin-as-a-Service product already implemented by Jupiter, MegaETH, Sui, and others.
- Circle extracts profits from Web3.
- Ethena distributes profits to Web3 users.
This model of Ethena aligns with the principles of a decentralized future and enables the formation of a strong, engaged user community.
HyENA should become one of the core products for Ethena, on which the team will be placing a significant bet.
They're softlaunching the protocol to test its functionality, so access to Hyena is by invite only. You can test the new PerpDEX from the Ethena and Based teams with my link:
app.hyena.trade/ref/EUGENE_BUL…
Over $4B of USDC has been deployed on Hyperliquid, allowing Circle to generate ~$20M in profit. This amount would be enough to invest in ~10 pre-seed/seed projects within the ecosystem.
Ethena has decided to combat this by creating HyENA – a PerpDEX built on HIP-3. Its key feature will be the role assigned to USDe.
USDe is becoming the stablecoin that serves as a collateral for PerpDEX trading. This has important implications:
1. USDe generates 5% APY yield for idle assets, as well as while you're trading.
2. Provides an additional source of income for HLPe – funding rates + market making + liquidation fees.
3. Ability to purchase YT on Pendle in the near future.
This is direct competition against Circle, which is an extension of the Stablecoin-as-a-Service product already implemented by Jupiter, MegaETH, Sui, and others.
- Circle extracts profits from Web3.
- Ethena distributes profits to Web3 users.
This model of Ethena aligns with the principles of a decentralized future and enables the formation of a strong, engaged user community.
HyENA should become one of the core products for Ethena, on which the team will be placing a significant bet.
They're softlaunching the protocol to test its functionality, so access to Hyena is by invite only. You can test the new PerpDEX from the Ethena and Based teams with my link:
app.hyena.trade/ref/EUGENE_BUL…
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