- Ethena announced the launch of its USDe stablecoin on the Solana network.
- Solana users can now transact in USDe across applications in the Solana ecosystem.
- ENA and SOL are in the red after the announcement.
Ethena (ENA) launched its dollar-denominated stablecoin USDe on the Solana network on Wednesday, allowing users to access it while transacting through applications in the SOL ecosystem. Meanwhile, ENA and SOL fell 6% and 1.3%, respectively, following the announcement.
Solana integrates USDe stablecoin amid SOL and ENA declines
Ethena has launched its dollar-denominated stablecoin USDe on Solana, allowing users to transact using the asset across Layer 1 dapps.
Ethena Labs announced the launch earlier today as several Solana protocols, including DeFi platform Kamino, DEX platforms Orca, and Drift Protocol, are already integrating the stablecoin into their platforms.
The integration will allow users to claim rewards using the staked version of USDe (sUSDe) as Ethena aims to increase liquidity and broader market access.
Users can leverage their USDe and sUSDe holdings by borrowing PYUSD on Kamino Finance. The Drift protocol also offers users the opportunity to earn yield on USDe and sUSDe through perpetual trading.
In addition, Ethena Labs has decided to add SOL, the native token for the Solana network, as one of the underlying assets to support the USDe stablecoin. The decision is subject to governance, which, if approved, could improve USDe’s scalability and add $2-3 billion in open interest on major exchanges, Ethena explained.
The launch has yet to impact the prices of SOL and ENA, which are currently in the red as the broader cryptocurrency market has yet to recover. Following the announcement, both tokens fell by 1.3% and 6%, respectively.
