USDe Stablecoin Surges 25,645% to $337M on Base

A stablecoin called USDe has seen an astonishing 25,645% surge in value over the past 90 days, catapulting it to a $337 million presence on Coinbase's Layer 2 network. This meteoric rise has propelled USDe into second place among stablecoins on Base, with its market share now standing at approximately 8.27%. The total global supply of USDe sits around $4.08 billion, spread across multiple chains.

Unlike traditional stablecoins such as USDC or USDT, which back each token with reserves of dollars and dollar-equivalent assets in bank accounts, USDe employs a delta-neutral hedging strategy to maintain its value. This involves holding spot crypto assets and simultaneously opening equal short positions in perpetual futures contracts.

The funding rates on perpetual futures flow to the short side, generating a yield that is passed to holders through sUSDe, the staked version of the token. Ethena Labs and Coinbase have established partnerships around custody and high-yield product integration, facilitating USDe's deployment and distribution.