Ethena Labs’ USDe Rewards On Bybit, Here’s Everything

Bybit exchange has announced the integration of  Ethena Labs’ USDe, a novel reward-bearing stable margin collateral. Set to launch next month, this innovative financial instrument aims to revolutionize how traders manage their collateral while simultaneously earning rewards.

USDe Integration Details & Potential Market Impact

Bybit crypto exchange has introduced Ethena Labs’ USDe, a reward-bearing stable margin collateral. Set to launch on August 2, this integration promises to revolutionize how traders manage their collateral and earn rewards.

Bybit users will have the opportunity to earn up to 20% Annual Percentage Rate (APR) on their USDe holdings, with rewards paid out daily. This applies not only to simply holding USDe but also to using it as collateral for derivatives trading. The APR, which will vary daily, can be checked on Bybit’s Savings page or UTA/Funding account page.

In an industry first, this integration allows traders to potentially offset their funding costs with their collateral, a move that Ethena Labs claims will fundamentally reshape trading by improving capital efficiency. This development is particularly significant given that over $30 billion of USD collateral across exchanges is currently used for margining perpetuals without capturing additional value.

Bybit will distribute rewards daily at 6 AM UTC to users’ Funding accounts, with no minimum holding requirement. Additionally, users can buy and sell USDe for zero fees across both USDe/USDT and USDe/USDC spot pairs.

This launch marks a significant step in establishing USDe as a widely used currency on exchanges. They have viewed this integration as a challenge to the existing stablecoin market, offering a product specifically designed for crypto-native users.

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Ethena Labs Rapid Growth and Strategic Milestones

Following the successful launch of USDe and initial Shard Campaigns, Ethena’s Total Value Locked (TVL) has seen explosive growth. In just 57 days, it reached over $2.11 billion. Few months back when USDe was further integrated into Bybit, becoming a collateral asset for trading perpetual futures and supporting zero-fee spot pairs for BTC and ETH against USDe.

This spurred additional growth, with TVL increasing by an extra $1.3 billion, bringing the total to over $3.6 billion in just over four months since the mainnet launch. These achievements show their potential and impact within the decentralized finance landscape.

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