Buy Ethena

Through the introduction of a synthetic dollar, USDe, Ethena aims to provide a new approach for stablecoins as a DeFi protocol on Ethereum. Unlike traditional stablecoins like USDC and USDT, which are backed by fiat currency and rely on centralized systems and reserves, USDe is fully decentralized and not tied to fiat money. This synthetic dollar offers users a stable digital currency independent of traditional banks and constraints like regulations and centralized custodians.

Ethena was founded to create a censorship-resistant and scalable monetary system that is fully crypto-native, meaning it operates without relying on traditional banks. At the core of the Ethena ecosystem is USDe, which maintains a stable value without typical dollar reserves. Instead, Ethena utilizes a technique called "delta-hedging" to neutralize price fluctuations by offsetting price risks of underlying assets like Ethereum with short futures positions, ensuring stability.

Through this approach, Ethena provides an alternative to stablecoins vulnerable to market and regulatory risks. This makes the platform appealing to both individual users and institutional investors seeking a reliable and transparent digital currency. Ethena also addresses the need for an independent and scalable form of "base money" in the crypto space. In addition to its role as a stable currency, USDe offers opportunities for passive income through staking.

Who founded Ethena?

Ethena was founded by Guy Young, an experienced entrepreneur and developer in the crypto sector. The project is managed by Ethena Labs, a progressive company focusing on decentralized finance. Ethena Labs' team consists of experts in blockchain, cryptography, and financial markets. With their combined experience in traditional and decentralized finance, the Ethena team has laid a strong foundation for the development and implementation of the ENA protocol and the synthetic dollar, USDe.

Ethena offers a wide range of applications for both beginner and experienced users to benefit from a stable, decentralized digital currency within the Ethena ecosystem. Below are the key features and capabilities:

• Hedge against volatility: USDe helps users protect their wealth from market fluctuations, maintaining the value of their assets stable.
• Payment method: USDe can be used as a payment method for various transactions, making it ideal for international payments and daily expenses.
• Access to DeFi applications: USDe can be used in various DeFi services, such as borrowing, lending, and yield farming, providing users with more flexibility in capital management.
• Savings and investment instrument: Ethena offers a unique savings product through USDe, the "Internet Bond," allowing users to earn passive income through staking and delta-hedging.
• Acceleration of crypto adoption: By providing stability and scalability, USDe makes cryptocurrency more accessible to a wider audience, including individuals, businesses, and institutions

Ethena achieves stability by using a synthetic dollar, USDe, and a technique called delta-hedging.

The minting of USDe starts when users collateralize their crypto assets, such as Ethereum. This collateral is converted into USDe based on a value determined accurately by Ethena's Pricing API. This API ensures a reliable and slippage-free transaction by calculating the correct value. Once the USDe is issued to the user, it can be staked for additional rewards.

Delta-hedging

Users can stake their USDe by transferring it to the StakedUSDe smart contract in exchange for sUSDe tokens. These tokens generate passive income through Ethena's staking and delta-hedging activities. The earnings come from various sources, including rewards on the Ethereum blockchain and profits from futures contracts.

Earning profits through staking

Ethena is introducing a savings tool called the "Internet Bond," allowing users to generate passive income by investing assets. The Internet Bond combines USD stability with profits from futures markets and staked assets, providing attractive returns that outperform traditional savings accounts. Ethena offers double-digit returns through DeFi mechanisms and smart financial strategies.

Ethena's Internet Bond

Ethena provides complete blockchain transparency, allowing users to track every transaction and have insight into their assets. While Ethena offers risk management, DeFi protocols are never risk-free. There is a small smart contract risk, and extreme market fluctuations can lead to liquidation in exceptional cases. Ethena, however, sets aside special funds to mitigate these risks as much as possible.

Risk management and transparency

Ethena ensures complete blockchain transparency, allowing users to track every transaction and monitor their assets. While Ethena offers risk management, DeFi protocols always come with some risks. There is a small smart contract risk, and extreme market fluctuations can lead to liquidation in exceptional cases. However, Ethena sets aside special funds to minimize these risks as much as possible.

The ENA token is a key element in the Ethena ecosystem, functioning as a governance token that grants holders voting rights on platform decisions. This allows ENA holders to actively contribute to Ethena's development. In addition to governance, the ENA token provides added value as a reward mechanism for users who stake their tokens or participate in liquidity pools.

The maximum supply of ENA tokens is capped at 2.75 billion tokens, ensuring a stable token value for sustainable growth and user engagement.

Ethena stands out in the DeFi world with innovative features that make the project unique. Here are five unique characteristics of Ethena:

• Synthetic dollar without fiat reserve: Ethena's USDe is a synthetic dollar that is completely independent of fiat currency and centralized reserves. This makes USDe a stable digital currency free from the risks and limitations of traditional financial systems.
• Delta-neutral stability through hedging: Ethena utilizes a unique delta-hedging technique to maintain the stability of the USDe token. By using short futures, price fluctuations are offset, providing a stable value without relying on traditional collateral structures.
• Internet Bond as a new savings instrument: Ethena introduces the Internet Bond, a new way for users to generate passive income on the blockchain. This offers an attractive alternative to traditional savings options, with higher returns and independence from banks.
• Fully Ethereum-based security: The platform operates entirely on the Ethereum blockchain, benefiting from Ethereum's security and transparency without interference from centralized entities.
• Sustainable yield generation through delta-hedging: Ethena generates sustainable returns by utilizing delta-hedging, making it not solely reliant on market speculation or token supply inflation.

At Bitvavo, you can buy Ethena (ENA). Our platform allows both novice and experienced traders to invest in Ethena coins. Follow these steps to purchase ENA on our website or app:

1. Log in to your Bitvavo account or create a new account.
2. Deposit funds by clicking "Deposit".
3. Head to the Ethena purchase page, enter the amount in euros you wish to invest, or select the number of ENA tokens you want to purchase.
4. Confirm your purchase by clicking "Buy".

The price of ENA is tied to the current market value. After completing your purchase, tokens are added directly to your Bitvavo account, where you can easily manage or sell them when the market is favorable.

Do you want to safely store your Ethena (ENA) tokens? Easily do so in your Bitvavo account, where most customer funds are securely held in cold storage. For extra security, enable two-factor authentication (2FA) to require a verification code along with your password when logging in.

You can choose to transfer your ENA tokens to an external wallet supported by Ethena, such as a hardware or software wallet. Always check the wallet address in your Bitvavo account before conducting a transaction to ensure that your tokens are quickly and securely transferred to an external wallet for peace of mind.