Non Cult Crypto News

Non Cult Crypto News

in

Optimism high for Ethena’s USDtb stablecoin as it clocks $65M TVL on day 1

Ethena’s USDtb has already amassed more than $65 million in total value locked on the opening day.

COINTELEGRAPH IN YOUR SOCIAL FEED

Decentralized finance firm Ethena Labs rolled out its new BlackRock BUIDL Fund-backed stablecoin, USDtb, on Dec. 16, amassing $65.4 million in total value locked in the first day.

Ethena’s new USDtb stablecoin will function similarly to Tether (USDT) and USD Coin (USDC) as it is backed by cash or cash equivalents at a 1:1 ratio and could help holders of Ethena’s flagship product, USDe, “weather difficult market conditions.”

“Ethena will be able to close the hedging positions underlying USDe and re-allocate its backing assets to USDtb to further ameliorate related risks,” Ethena Labs said in a Dec. 16 announcement.

Source: Ethena Labs

USDtb has already received high praise from José Maria Macedo, one of the founders of blockchain research and development firm Delphi Labs, who predicted that USDtb will become the largest tokenized treasury product within one month of launch.

Ethena’s head of growth Seraphim Czecker said USDtb has the potential to scale to $100 billion because the firm can now effectively allocate capital in bearish environments by “creating an APY ‘floor’ around the T-Bill rate.”

The stablecoin is 90% backed by BlackRock’s USD Institutional Digital Liquidity Fund in partnership with blockchain tokenization firm Securitize. 

One of Ethena’s committee members, Block Analiticia, noted in the now-approved proposal that stablecoins like USDC would make up the remaining 10% of USDtb’s reserves, which can help provide additional liquidity over weekends or other times when US Treasury bill markets are unavailable.

The “core” of USDtb’s smart contracts passed three full audits from audit firms Pashov, Quantstamp, and Cyfrin in October with no high or medium-level findings.

USDtb was given the green light after being approved by Ethena’s Risk Committee in late September — however, exact details weren’t finalized until earlier this month.

Cointelegraph reached out to Ethena Labs for comment.

Related: Ethena dismisses inaccurate claims over ENA token staking

It comes as Ethena’s USDe stablecoin recently surpassed Dai (DAI) to become the third-largest stablecoin — trailing only USDT and USDC.

However, USDe’s market cap of $5.87 billion is still far behind USDT and USDC’s market cap of $140.6 billion and $42.1 billion, DefiLlama data shows.

The stablecoin market cap recently surpassed $200 billion, and crypto asset manager Bitwise expects that number to double to $400 billion in 2025, citing the likely passing of stablecoin legislation in the US.

Magazine: The rise of Mert Mumtaz: ‘I probably FUD Solana the most out of anybody’

This article first appeared at Cointelegraph.com News

What do you think?

Written by Outside Source

Lido to discontinue services on Polyon in coming months after low adoption

Nigeria arrests nearly 800 in raid on crypto pig butchering hub

Back to Top

Ad Blocker Detected!

We've detected an Ad Blocker on your system. Please consider disabling it for Non Cult Crypto News.

How to disable? Refresh

Log In

Or with username:

Forgot password?

Don't have an account? Register

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

To use social login you have to agree with the storage and handling of your data by this website.

Add to Collection

No Collections

Here you'll find all collections you've created before.