Ethena Labs Launches Governance Token and Expands Stablecoin Amid Praise and Controversy

Ethena Labs recently launched a new governance token, $ENA, and expanded its stablecoin USDe, garnering praise but also controversy around accuracy of past announcements.

The protocol mints USDe stablecoins backed by Ethereum and stETH collateral, employing a complex "delta hedging" strategy to maintain USDe's dollar peg.

$ENA holders have rights to decide the future direction of the protocol, like shareholders in a company.

Ethena uses a mix of centralized and decentralized mechanisms for efficiency, liquidity and security.

The protocol's approach is complex; $ENA can be traded on major exchanges or farmed by staking other tokens.