Ethena: Will expand neutral arbitrage trading to the stock and commodities markets

Odaily Planet Daily News: Ethena’s official announcement stated that, after receiving approval from the independent risk committee, USDe will expand its collateral types.

Ethena said that historically, USDe’s collateral assets have mainly been composed of short positions in perpetual contracts targeting spot crypto assets. However, current perpetual contract positions account for only 11% of USDe’s collateral assets; the remainder has been allocated to various stablecoin reserves and DeFi lending positions. Any investment portfolio concentrated on a single strategy carries inherent risk. Although USDe’s past collateral framework has never resulted in collateral asset losses, has not used reserve funds, and has not encountered any critical issues, the project is still actively advancing collateral structure diversification to reduce concentration risk and build a more resilient reserve portfolio.

This collateral asset diversification includes four directions, each of which is a natural extension of Ethena’s existing business:

1、Institutional stablecoin lending with overcollateralization: the collateral assets provided by the borrower are held by a third-party institutional-grade custodian;

2、More real-world assets (RWA) beyond U.S. Treasury bills (T-Bills): expanding into more high-quality, liquid credit-based assets;

3、Stock and commodity basis trading: extending Ethena’s delta-neutral (neutral hedging) approach, which has already been applied to crypto assets, to traditional assets;

4、Prime Lending for trading institutions: providing funding to trading firms through overcollateralized loans, with exchange risk borne by the counterparties.