Ethena expands USDe backing strategy with Binance bStocks and equity perps

USDe backing strategy — Ethena Labs has expanded the backing strategy for its USDe synthetic dollar by incorporating Binance’s bStocks and equity perpetuals into its basis trade.

The move diversifies the assets used in the protocol’s delta-neutral hedging strategy, which aims to generate yield to support USDe’s peg. Previously, the strategy relied heavily on ether and bitcoin futures and perpetual swaps.

By adding Binance’s tokenized stock offerings and equity-linked derivatives, Ethena can tap into a broader set of traditional finance markets. This is intended to increase the scalability and resilience of the yield generation backing the $2.3 billion stablecoin.

The expansion follows Ethena’s integration of Bitcoin as a backing asset in April. The protocol’s growth has made it a significant player in the decentralized stablecoin sector, competing with offerings like MakerDAO’s DAI.