Binance and Ethena Expand Basis Trading into Equity Perpetual Contracts

Ethena and Binance are expanding their partnership to offer basis-trading strategies in equity perpetual contracts. This move extends market-neutral derivatives structures beyond crypto assets, leveraging bStocks as tokenized spot collateral and Binance's USDT-denominated equity perpetual contracts for hedging.

The structure is designed to capture differences between spot prices and futures or perpetual-contract prices. By doing so, it provides a new way for investors to hedge their positions and manage risk.

Binance will give eligible delta-neutral accounts, including Ethena, lower priority for automatic deleveraging (ADL). This change aims to reduce the likelihood of forced liquidations and provide more flexibility for traders.