Ethena Taps Binance to Fuel Equity Perpetuals Expansion

Ethena has partnered with Binance to expand its basis trade strategy into equity perpetuals. This move marks one of the biggest updates to USDe's collateral backing since launch.

The new partnership expands Ethena's addressable collateral market from $2.5 trillion in crypto assets to more than $150 trillion in real-world assets. Allocations began today, with Binance being the first venue for this extension.

Ethena's basis trade strategy pairs crypto collateral with short perpetual futures positions to generate yield while minimizing price exposure. The protocol now expects the equity perpetuals opportunity to exceed the $15 billion figure captured during the last market cycle by a wide margin, given the much larger total addressable market in traditional equities.

Binance's equity basis trade has averaged more than 11% annualized returns over the past six months. Open interest in that market has grown roughly 30% per month over the last three months, according to Ethena's data.