The Ethena community is preparing to vote on a proposal aimed at integrating Ethereal, a decentralized exchange built on the Ethena Network, into its reserve management system. This move is intended to enhance the utility and demand for USDe, a synthetic stablecoin developed by Ethena Labs.
The proposal, submitted by user “Fells0x” on September 30, seeks approval for Ethereal to oversee spot and perpetual futures positions that support USDe. Should the proposal pass, Ethena token holders would receive 15% of any future governance tokens from Ethereal.
Ethereal V1 is anticipated to launch on the testnet in Q4 and promises to deliver performance comparable to centralized exchanges while maintaining “complete self-custody.” According to the proposal, the exchange is designed to handle up to 1 million operations per second with latency under 20 milliseconds.
Fells0x stated, “Ethereal’s launch will provide the blueprint for other applications built using USDe on the Ethena Network, helping to drive Ethena’s transformation from an asset issuer to a platform for financial innovation.” The proposal also hints at future synergies, including decentralized lending and borrowing applications that could be developed on top of USDe.
This proposal comes on the heels of Ethena’s recent announcement of UStb, a stablecoin backed by BlackRock, which aims to address community concerns surrounding USDe. Supported by the BlackRock USD Institutional Digital Liquidity Fund and private lender Securitize, UStb is positioned as a safeguard against systemic risks in adverse funding rate scenarios.
Despite previous concerns from figures like Andre Cronje, who compared USDe to the failed TerraUSD, Ethena has asserted that such risks have not materialized during USDe’s six months of operation.
Pending approval, Fells0x has requested technical support from the Ethena Foundation and Risk Committee to facilitate the seamless integration of Ethereal into Ethena’s hedging strategies. While the vote is expected in the coming months, a specific date has yet to be announced.
