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Ethena Approves Fee-Sharing Proposal for ENA Token

Ethena empowers ENA stakeholders with a new fee-sharing proposal, unlocking greater value from their holdings

Wintermute’s governing forum says that the Ethena Foundation agreed to Wintermute’s plan to give token holders a share of the decentralized finance (DeFi) protocol’s profits.

Wintermute, a cryptocurrency market maker, suggested on November 6 that Ethena’s fee income should be split among holders of ENA, the platform’s coin.

The Ethena Foundation said in the governance meeting on November 15 that it was happy to share that the Risk Committee had agreed to the plan to let users switch $ENA fees.

“The Foundation will work with the Risk Committee to set clear parameters for activating the fee switch by November 30th. Then, exact implementation details will be provided.”

Source: CoinMarketCap

Ethena Labs released USDe, a stablecoin that earns interest, in February. Users can mint USDe against Bitcoin, Ether, liquid staking derivatives (LSDs), and other stablecoins.

Ethena then uses off-chain financial derivatives to protect the stock against its natural volatility.

According to CoinMarketCap, USD in circulation has grown to almost $3.2 billion since February, when Ethena Labs released the unique stablecoin.

Ethena’s ENA, released in April, can be staked for sENA, which didn’t have a clear way to gain value before Wintermute’s governance plan.

According to Wintermute’s governance plan from November 6, the Ethena Protocol has and continues to bring in a lot of real money, showing a clear level of [product market fit] for USDe.

“Unfortunately, sENA doesn’t directly benefit from this revenue. This means that holders of sENA don’t have a clear connection to the growth of the protocol.”

“This needs to be recognized, and steps should be taken to ensure that ENA holders understand the basic ideas behind the protocol.”

Wintermute took USDe as collateral for spot crypto and derivatives trades on October 25.

In a post on the X platform, Wintermute said that its clients can now use “USDe as collateral for options, [credit default swaps], forward, and spot trading.”

Wintermute said that the stablecoin will be added to their list of accepted crypto security, which already includes BTC, ETH, Solana, and USD Coin.

James Emmanuel

James is a Computer Science student with a robust foundation in tech and a skilled DevOps engineer. His technical expertise extends to his role as a news reporter at Protechbro, where he specializes in crafting well-informed, technical content that highlights the latest trends and innovations in technology.

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