TechFlow news, according to Coindesk, within 24 hours of the launch of DeFi platform Ethena, over $287 million worth of USDe has been minted. The platform offers its USDe token holders an annualized yield of 27%. However, this 27% reward is calculated on a rolling 7-day basis and may change weekly depending on underlying factors.
Ethena describes USDe as a synthetic dollar that largely mimics an algorithmic stablecoin, which targets a peg of $1. USDe is minted as ETH is deposited into the platform.
The yield comes from two sources:
1. Staking ETH with validators to earn approximately 5% in capital returns.
2. Shorting Ethereum futures to capture funding rates, which historical models estimate at over 20%.
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