USDE, the flagship stablecoin by Ethena Labs, has quickly risen to become the third-largest stablecoin on the market within a year of its launch. The stablecoin uses a derivative-based strategy known as delta hedging to maintain its peg with the US dollar. USDE has generated over $250 million in revenue and is on the verge of reaching a $6 billion market capitalization. The double-digit yields offered by USDE have contributed to its rapid growth. While Tether and USDC dominate the stablecoin market, there is room for niche players like USDE to succeed, particularly in underserved areas such as payments. Ethena generates revenue through basis trading, staking, and stablecoin yields. Unlike previous stablecoin failures, USDE is backed by real collateral rather than a governance token.



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