Ethena

Ethena is a protocol running on Ethereum that produces a synthetic dollar called USDe by combining crypto collateral with derivative positions instead of dollar reserves held at a bank. ENA is the governance token issued on Ethereum and is also available on other networks via bridges. The protocol's product family also includes the yield-bearing sUSDe and USDtb, which is backed by tokenized treasury funds.

Ethena's core strategy is delta-neutral hedging: for assets held as collateral, such as ETH, staked ETH or BTC, short perpetual futures positions of equivalent size are opened on exchanges, with the aim of offsetting the net effect of price movements. The yield passed to sUSDe holders comes from the funding payments on these positions and from staking rewards. ENA holders take part in governance on matters such as risk parameters and collateral structure; ENA can be staked to obtain sENA and is used in some incentive programs in the ecosystem.

The ENA price may be influenced by growth or contraction in USDe supply, the direction of funding rates, governance decisions on sharing protocol income with token holders, token unlocks and counterparty risks tied to centralized exchanges and custodians. The Lzzo.com page is based on ENA's USDT pair on Binance; the price is converted into dollars at Coinbase Exchange's USDT/USD rate and the chart is drawn with this series.