Solana Proposal Came From Bitcoin and Ethereum-Backed Altcoin, Price Jumped!

[14/10/2024]
While the leading cryptocurrency Bitcoin starts the news with a rise, altcoins are also seeing movement.At this point, while many altcoins have some have positively diverged from the market.One of them was Ethena .The Solana proposal is at the origin of the rise of As a result, the Ethena community proposed that Solana's staked versions be added as reserve assets to support USDe.With this proposal

While the leading cryptocurrency Bitcoin starts the news with a rise, altcoins are also seeing movement.At this point, while many altcoins have some have positively diverged from the market.One of them was Ethena .The Solana proposal is at the origin of the rise of As a result, the Ethena community proposed that Solana's staked versions be added as reserve assets to support USDe.With this proposal, the community aims to diversify the assets supporting USDe and thus increase its success and utility in the decentralized finance space.If the proposal is approved, Solana will join Bitcoin and Ethena's collateral assets.

“This proposal proposes that USDe’s backing be allocated to SOL using the same hedging mechanism that Ethena already implements in its Bitcoin and Ethereum futures.

The proposed allocation will be slowly scaled in consultation with the Risk Committee, given the shorter trading history of SOL perpetual futures, less liquidity and less historical funding rate data.”

After this recommendation, Ethena started to rise, and the price increased by 17.7% to $0.4.

What is USD?

USDe differs from stablecoins like Tether or Circle in that it is a synthetic stablecoin and is not 1:1 to fiat assets.

The stablecoin maintains its peg at $1 in stablecoins and using a cash-and-takeout hedge, which involves taking large forward positions at open interest to lock in value and is backed by a reserve fund to manage risk in volatile market conditions.

Sophie Nguyen