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What Is USDe: Ethena's Synthetic Dollar

Advanced
Stablecoin
DeFi
Altcoins
Apr 9, 2025
7 min read
0

Stablecoin cryptocurrencies have revolutionized the crypto market since their arrival more than ten years ago. Assets like USDT, USDC and other popular stablecoins have been instrumental in reducing crypto volatility and connecting the worlds of crypto and fiat currencies.

USDe is a synthetic dollar asset issued by Ethena that doesn't suffer from these common limitations of stablecoins. Backed by delta-hedging derivatives positions using perpetual and futures contracts, as well as short-term US government bond funds.

Key Takeaways:

  • USDe is a synthetic dollar cryptocurrency with pegged to USD, maintained via automated delta-hedging trading operations.

  • USDe's stability and dollar peg is ensured through opening and closing short perpetual positions for its underlying collateral assets.

  • Looking to trade USDe tokens? Bybit offers Spot trading pairs such as BTC/USDE, ETH/USDE, SOL/USDE, USDE/USDT and USDE/USDC.

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