The team at Ethena Labs has unveiled a restaking feature for the governance token ENA and the “synthetic stablecoin” USDe through Symbiotic and LayerZero.
Today marks an important step forward in more closely aligning the growth and use of $USDe with $ENA
The launch of a generalized staking capability for $ENA with @symbioticfi and @LayerZero_Labs is the first step in adding functional utility for $ENA within the Ethena ecosystem pic.twitter.com/TQEZTTV1uQ
— Ethena Labs (@ethena_labs) June 17, 2024
The initiative is described as the “first step in adding functional utility for ENA within the Ethena ecosystem.”
Currently, users can:
- lock tokens in the protocol for potential future rewards up to 30x;
- place assets on the Pendle Finance platform at a fixed interest rate of approximately 75% per annum.
The restaking pools are expected to provide economic security for the Ethena network. The first will launch on Symbiotic on June 26. The initial use case for this option will be to facilitate cross-chain transfers of USDe through the LayerZero DVN messaging system.
Rewards for assets placed in the pool will include points from incentive programs by Symbiotic, the SocialFi platform Mellow, and LayerZero (if distributed in favor of Ethena).
Ethena Labs also announced that from June 17, at least 50% of ENA received during the first airdrop season must be locked in one of the three listed options.
“Failure to meet this requirement will result in all undisclosed funds related to the respective wallet being redistributed among others who have staked tokens,” the developers warned.
The aim of this measure is to encourage long-term holding of ENA while displacing speculative capital.
In April, Ethena Labs’ USDe capitalization surpassed $3 billion just four months after launch—faster than any competitors.