USDE Stablecoin Project Extends to Solana, Includes SOL Backing

On Wednesday, Ethena Labs, the team responsible for the yield-bearing stablecoin project USDE, revealed its expansion to the Solana blockchain.

Ethena Labs, the team behind the yield-bearing stablecoin project USDE, announced on Wednesday its expansion to the Solana blockchain. This move will see USDE being deployed on the distributed ledger and SOL being used as part of the stablecoin’s reserve backing.

The development comes despite the project witnessing redemptions totaling around $300 million in less than two weeks.

Solana Integration

“August 7th marks Ethena’s Solana integration,” Ethena Labs said on X. “USDE deployed on Solana thanks to Layerzero Labs OFT [and] SOL onboarded as a backing asset for USDE, subject to governance.”

Ethena is also launching a “Solana Sats Campaign.” “SOL as a backing asset for USDE will be proposed to governance for implementation next week and opens up an extra $2-3bn of open interest across major exchanges, improving USDE’s scalability even further,” Ethena stated. The team also noted that pending a governance vote, Ethena will scale slowly into SOL gradually as funding is monitored.

“SOL perps began trading later and have less historical data on funding rates,” Ethena concluded. “But YTD in 2024 SOL funding has outpaced both BTC and ETH, even after the latter two assets had ETFs launched. Subject to governance, Ethena will scale slowly into SOL as funding is monitored.”

What do you think about USDE integrating with Solana? Share your thoughts and opinions about this subject in the comments section below.

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