The team at Ethena Labs has increased rewards for those staking a significant volume of ENA. The token responded with an 11% rise, reaching $1.3.
According to the updated policy, from April 8, the minimum staking period for ENA is seven days.
For users locking more than 50% of their token holdings relative to their balance, rewards in bonus Sats increase by 50%. These earned points are expected to be converted into tokens during a future airdrop.
To gain additional profit, stakers must deposit ENA with a minimum amount of $5000.
“For absolute transparency: team and investor allocations that are locked in vesting schedules cannot stake ENA. Only tokens obtained from the initial airdrop or purchased on the open market will be in circulation,” clarified the Ethena team.
The initial ENA lock-up limit is set at $200 million, with plans to increase it over time.
Meanwhile, analysts at Lookonchain reported that three wallets withdrew a total of 11.9 million ENA (~$15.23 million) from Binance to participate in staking.
Whales are withdrawing $ENA from exchanges and staking it due to the #Ethena Season 2 staking rewards.
3 whales withdrew 11.9M $ENA($15.23M) from #Binance and staked it.https://t.co/3UrErMJ2R3https://t.co/8ZPz0U8U8Fhttps://t.co/AAwOJLz8qk pic.twitter.com/NbMdbF5xdO
— Lookonchain (@lookonchain) April 8, 2024
Additionally, the community of the lending DeFi platform Frax Finance approved a proposal to invest $250 million in Ethena Labs pools.
Excited to share the approval of FRAX’s singularity roadmap proposal, which includes an allocation towards a USDeFRAX POL via the Curve AMO with a $250m USDe ceiling pic.twitter.com/eM9T4Cjm22
— Ethena Labs (@ethena_labs) April 8, 2024
As part of the initiative, Frax has already launched several pools of the “synthetic stablecoin” USDe through the automated market maker Curve AMO.
Previously, the Ethena Labs team included Bitcoin as collateral for their USDe. Some experts deemed this a risk for the leading cryptocurrency, comparing the project to the collapsed Terra.
Back in February, the community expressed doubts about the viability of Ethena Labs’ stablecoin. Analysts highlighted potential yield inversion as a drawback.