Ethena Community Considers Solana for USDe Reserves

The community supporting a synthetic dollar protocol on Ethereum is considering the addition of a major competitor to its reserve assets for its stablecoin.

A recent proposal from the Ethena ( ENA ) community suggests incorporating Solana (SOL) as a reserve asset for the US-dollar pegged stablecoin, USDe.

This plan involves allocating a portion of USDe’s reserves to SOL , following similar mechanics to Ethena’s current hedging strategies, which utilize perpetual futures for Bitcoin ( BTC ) and Ethereum ( ETH ).

The implementation of this allocation would be gradual, with input from the Risk Committee due to SOL’s shorter trading history, lower liquidity, and limited historical funding rate data.

In addition, the proposal seeks to include liquid-staked versions of SOL, such as Binance Liquid Staked SOL or Bybit Liquid Staked SOL (bbSOL), expanding the diversity of USDe reserves.

The initiative also aims to unlock significant open interest in the market. By potentially enhancing protocol revenue through SOL funding rates, this strategy could release an additional $2-3 billion in open interest.

This would enable Ethena to scale USDe beyond its current supply of approximately $2.5 billion and meet any rise in market demand.