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  1. Home
  2. /Glossary
  3. /Ethena
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defi

Ethena

The protocol behind USDe, a synthetic dollar that maintains its peg through delta-neutral hedging.

Definition

The protocol behind USDe, a synthetic dollar that maintains its peg through delta-neutral hedging. Users deposit staked ETH and Ethena shorts an equivalent amount on perp exchanges, earning funding rates in the process. Its high yields attracted billions in deposits but raised concerns about centralization risk.

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