Ethena Emerges from Stealth with $6 Million Funding Led by Dragonfly
Ethena, a promising decentralized finance (DeFi) startup, has recently unveiled itself from stealth mode, announcing a successful funding round that raised $6 million. The round was led by Dragonfly, a venture capital firm with a strong focus on blockchain technology. Renowned figures in the crypto space, including BitMEX founder Arthur Hayes and his family office, Maelstrom, joined the funding round. Notably, several major crypto derivatives exchanges like Deribit, Bybit, OKX, Gemini, and Huobi, alongside venture capital and trading firms, also participated in the investment.
Ethena’s Mission: Innovation Beyond Traditional Banking Systems
Founded earlier this year, Ethena is dedicated to developing innovative financial solutions that transcend the limitations of traditional banking systems. The startup aims to address the global demand for accessible, permissionless dollar-denominated savings instruments. Ethena has been working diligently on two groundbreaking products tailored for international investors: a US dollar stablecoin and the world’s first digitally native savings bond.
Introducing the Independent and Transparent Ethena Stablecoin
Ethena’s stablecoin is designed to operate independently of the conventional financial system, ensuring full collateralization and transparency. To maintain its peg to the US dollar, the stablecoin employs a novel mechanism known as “delta-neutral” stability. This approach involves hedging price exposure through shorting Ethereum using perpetual swaps, effectively canceling out any losses or gains. As a result, the stablecoin can consistently maintain a peg of $1, providing stability and reliability to users.
The World’s First Digitally Native Savings Bond
Building on top of the stablecoin, Ethena is developing a savings bond that functions similarly to a US treasury bond. However, unlike traditional bonds tied to centralized banking institutions or government entities, the Ethena savings bond operates independently, leveraging the power of decentralized finance. The combination of the stablecoin and the savings bond creates a highly scalable digital currency and savings platform, offering users worldwide a genuine alternative to traditional banking systems.
CEO Guy Young on Ethena’s Vision
Guy Young, the Founder and CEO of Ethena, emphasized the significance of their mission. He stated, “Ethena has been built to address the largest and most immediate need within the crypto space. Through our innovative stablecoin, we are realizing our vision of a crypto-native stablecoin that operates without reliance on traditional banking infrastructure, enabling the creation of a widely accessible and permissionless internet bond.”
Ethena’s Roadmap and Partnership Strategy
With the $6 million seed investment, Ethena is well-positioned to prepare for the anticipated launch of its stablecoin and savings bond in the third quarter of 2023. The company plans to conclude the testnet phase, forge partnerships with industry leaders, and conduct thorough smart contract audits to ensure the protocol’s security and efficiency.