Ethena Shifts to Stock Perps Amid Crypto Derivatives' Declining Yields
Ethena, the issuer of USDe, a synthetic dollar worth approximately $4 billion, is expanding its hedging strategy to include perpetual contracts backed by stocks. The goal remains the same: to cover long exposure with short positions and collect fees from traders using leverage.
The yields currently offered on stocks far exceed those of crypto derivatives, prompting Ethena to diversify its sources of yield. Stock perpetuals have seen significant growth, with open interest reaching nearly $6 billion, compared to only 3.9% for Bitcoin contracts.
Ethena anticipates that perpetuals backed by real-world assets will surpass crypto derivatives in its collateral within 12 to 24 months. However, the strategy carries new risks, including limited liquidity and regulatory uncertainties.