USDe Stablecoin Achieves Delta-Neutral Stability with Perpetual Contracts

Ethena Labs' USDe is a delta-neutral stablecoin pegged to the US dollar at a one-to-one ratio.

The protocol achieves this through delta hedging of spot assets used as collateral for tokens when minted, allowing it to scale efficiently without overcollateralization.

USDe users can earn a yield from the funding rate and profit from holding Ether, with an estimated 33% annual return. The funding rate comes from perpetual contracts, which have no expiration date, while the profit from holding Ether contributes around 5% to the total yield.