The Ethena community is set to vote on a proposal to integrate Ethereal, a decentralized exchange built on USDe, into Ethena’s reserve management system.
The Ethena Labs community will soon vote on a proposal to integrate Ethereal, a decentralized exchange built on Ethena Network, into its reserve management system in a bid to expand “utility and demand” for USDe, a synthetic stablecoin developed by Ethena Labs.
The proposal, submitted by “Fells0x” on Sept. 30, seeks approval for Ethereal to manage spot and perpetual futures positions backing USDe. In return, (ENA) token holders stand to receive 15% of any future Ethereal governance tokens should the proposal pass.
Ethereal V1, expected to launch on testnet in Q4, aims to deliver centralized exchange-level performance while maintaining “complete self-custody,” the proposal reads. According to the proposal, the exchange’s architecture will be “capable of processing 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, helping to drive Ethena’s transformation from an asset issuer to a platform for financial innovation.”
Fells0x
The proposal also outlines potential future synergies, including decentralized lending and borrowing applications built on top of USDe.
The proposal follows Ethena’s recent announcement of UStb, a BlackRock-backed stablecoin aimed at addressing community concerns around USDe. Supported by the BlackRock USD Institutional Digital Liquidity Fund and private lender Securitize, UStb was introduced as a safeguard against systemic risks in negative funding rate scenarios.
Figures such as Andre Cronje had previously expressed concerns over USDe, likening it to the defunct TerraUSD. However, Ethena has maintained that no such risks have materialized in USDe’s over six months of operation.
Pending approval, Fells0x has requested technical support from the Ethena Foundation and Risk Committee to ensure smooth integration of Ethereal into Ethena’s hedging strategies. The vote is expected in the coming months, though no specific date has been set.
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