Ethena Labs is teaming up with BlackRock to introduce a brand-new stablecoin, UStb (USTB). This exciting project will leverage BlackRock’s tokenized USD Institutional Digital Liquidity Fund (BUIDL), which maintains a stable value of $1 per token. UStb is set to stand alongside Ethena’s existing synthetic dollar stablecoin, USDe (USDE), offering a fresh and reliable option for users!
Why UStb?
UStb will bring a unique twist to Ethena’s stablecoin lineup, providing a distinct product with a different risk profile than USDe. While USDe has weathered tough market conditions since its launch, the introduction of UStb will further stabilize the ecosystem, especially during periods of weak funding rates. The team said that the emergence of UStb will indirectly benefit Ethena USDe because if the market conditions are really bad and the funding rate goes negative, it may consider using a governance mechanism to close the USDe hedging position and gradually switch to adding UStb: The team also said that they are working with Bybit, Bitget to allow UStb to be used as margin collateral: Following the announcement, Ethena’s token ENA jumped 16%, reflecting strong market interest.
A Dynamic Duo: USDe and UStb
Ethena Labs aims to create a flexible system where USDe and UStb can work together. During unfavorable funding conditions, USDe will automatically adjust its backing by incorporating UStb, offering a stable solution in various interest rate environments. This dual approach ensures that users continue to benefit from both products, keeping the ecosystem robust and adaptable.
With the addition of UStb, Ethena is making sure its platform remains resilient no matter what the market throws its way. By combining the synthetic USDe with the liquid stability of UStb, Ethena is ready to tackle future challenges while providing its users with more options and enhanced security!
