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!
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed
The collaboration between Ethena Labs and BlackRock for UStb is an intriguing development in the stablecoin market.”
“UStb seems like a promising addition to Ethena’s offerings, especially with its focus on stability during tough market conditions.”
“I appreciate how Ethena is enhancing its ecosystem with UStb while ensuring USDe remains viable in various funding environments.”
“It’s smart to have different risk profiles between UStb and USDe; this could attract a broader range of users.”
“The use of UStb as margin collateral with exchanges like Bybit and Bitget could significantly boost its adoption.”
“The governance mechanism to adjust USDe’s backing during unfavorable conditions is a clever strategy to maintain stability.”
“I’m excited to see how UStb performs in the market and how it impacts the overall resilience of Ethena’s platform.”
“The 16% jump in Ethena’s token ENA post-announcement reflects strong investor confidence—this could be a great time to get involved!