The Ethena community is preparing to vote on a proposal aimed at incorporating Ethereal, a decentralized exchange operating on USDe, into Ethena’s reserve management framework.
The Ethena Labs community will soon hold a vote regarding a proposal that seeks to integrate Ethereal, a decentralized exchange designed on the Ethena Network, into its reserve management system. This move is intended to enhance the “utility and demand” for USDe, a synthetic stablecoin developed by Ethena Labs.
The proposal, initiated by “Fells0x” on September 30, requests approval for Ethereal to oversee spot and perpetual futures positions that support USDe. In exchange, holders of (ENA) tokens would receive 15% of any future governance tokens for Ethereal if the proposal is approved.
Ethereal V1, slated to launch on testnet in Q4, aims to offer centralized exchange-like performance while ensuring “complete self-custody,” according to the proposal. The architecture of the exchange is designed to handle “1 million operations per second with sub-20ms latency.”
“Ethereal’s launch will provide the blueprint for other applications built using USDe on the Ethena Network, propelling Ethena’s transition from an asset issuer to a hub for financial innovation.”
Fells0x
The proposal also suggests potential future collaborations, including decentralized lending and borrowing platforms built on USDe.
This proposal comes on the heels of Ethena’s recent announcement regarding UStb, a stablecoin backed by BlackRock that addresses community concerns surrounding USDe. Supported by the BlackRock USD Institutional Digital Liquidity Fund and private lender Securitize, UStb has been introduced as a precaution against systemic risks in negative funding rate situations.
Pending approval, Fells0x has sought technical assistance from the Ethena Foundation and Risk Committee to facilitate the seamless integration of Ethereal into Ethena’s hedging strategies. A vote is anticipated in the upcoming months, though a specific date has yet to be confirmed.
