We are thrilled to share that ENA is now listed on Coinhako!
What are Ethena Labs and ENA?
Ethena is a synthetic dollar protocol built on Ethereum for minting, redeeming, and staking USDe. It provides a crypto-native solution consisting of smart contracts, position management algorithms, and off-protocol operations that work in synergy to ensure that USDe functions as expected. Ethena is the project behind USDe, a synthetic dollar backed by assets including ETH, stETH, BTC, and USDT.
The ENA token is Ethena's governance token, allowing holders to participate in the protocol's decision-making processes.
There is a total supply of 15,000,000,000 ENA and ENA has traded for US $1.52 at its peak.
How does Ethena work?
Ethena's objective was to create an optimal USD stablecoin that fulfilled the following criteria: Stable, Scalable, and Censorship-Resistant. Decentralized stablecoins like DAI, do not rely on traditional financial infrastructure and encounter challenges related to scalability and instability in their mechanism design.
USDe, with its stability, scalability, and censorship resistance, is a synthetic dollar backed by crypto assets and futures and does not depend on traditional financial infrastructure nor require over-collateralization. Coined as the “internet bond,” USDe offers dollar-denominated savings with the benefits of DeFi. Users can mint USDe by requesting a price from Ethena's Application Programming Interface (API), generating a signed order, and sending it for execution on the blockchain, receiving USDe tokens in return.
Ethena employs delta-hedging to manage the risk associated with fluctuating backing asset values. It accomplishes this by establishing a relative short position on a derivatives exchange, allowing it to mint USDe against staked Ethereum or its derivatives. Simultaneously, it initiates short positions in derivatives to counteract the volatility of the underlying collateral. USDe can be spent like any other digital asset, and users accrue value through protocol yield by staking idle USDe with Ethena.
ENA holders play a crucial role in Ethena's decentralized governance, by having the authority to vote on proposals that will shape the platform's development and trajectory. Beyond governance, ENA serves as the utility token within the ecosystem, facilitating transactions, accessing features, and paying for services. Additionally, ENA incentivizes participation in the ecosystem through rewards for various contributions like liquidity provision and staking.
Staking ENA tokens not only enhances network security but also offers holders passive income. Moreover, ENA tokens are set aside for ecosystem development, funding new projects, grants, and initiatives to expand Ethena's capabilities and outreach.
Why does ENA stand out?
While USDe anchors the ecosystem as a synthetic dollar backed by crypto assets, ENA plays a pivotal role in enhancing its functionality and ensuring its stability and growth.
What sets ENA apart is its departure from the norm. Unlike typical stablecoins tethered to fiat currencies, USDe finds its backing in crypto assets. Ethena strategically leverages these mechanisms to offer competitive yields and propel growth within the DeFi ecosystem.
Since its inception, ENA has experienced an impressive ascent. Its robust technological infrastructure, combined with strong institutional support, has catalyzed substantial value appreciation in a remarkably short timeframe. ENA has also demonstrated resilience amidst market downturns, emerging as a standout performer.
Ultimately, ENA complements USDe's functionality by providing governance and incentivization mechanisms to support the stability and growth of the synthetic dollar.
What can you do with ENA on Coinhako?
ENA will be available for users to trade across all swap pairs on Coinhako.
To gain access to any of these trading pairs, you can either:
- Fund your SGD wallet on Coinhako instantly with PayNow (or any other supported payment method)
- Purchase instantly with Visa / Mastercard
Please note that the sending and receiving of <Coin> will not be available for this release.
Risk Warning on Digital Payment Token Services
Hako Technology Pte Ltd ("Coinhako") is licensed to provide digital payment token services under the Payment Services Act 2019 (No. 2 of 2019).
The Monetary Authority of Singapore ("MAS") requires us to provide this risk warning to you as a customer of a digital payment token ("DPT") service provider.
Before you pay your DPT service provider any money or DPT, you should be aware of the following.
- Your DPT service provider is licensed by MAS to provide DPT services. Please note that this does not mean you will be able to recover all the money or DPTs you paid to your DPT service provider if your DPT service provider’s business fails.
- You should not transact in the DPT if you are not familiar with this DPT. This includes how the DPT is created, and how the DPT you intend to transact is transferred or held by your DPT service provider.
- You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
- You should be aware that your DPT service provider, as part of its licence to provide DPT services, may offer services related to DPTs which are promoted as having a stable value, commonly known as “stablecoin”.
Visit: Coinhako.com/risk-disclosure for more information.