Crypto exchange Bitget has announced that it will be integrating Ethena’s USDe stablecoin as a collateral asset for its perpetual futures trading and “Earn” savings product. This move will allow Bitget users to potentially earn a yield on their collateral, which will be distributed by the exchange.
Leveraging USDe’s Benefits
Ethena Labs founder Guy Young emphasized the benefits of using USDe over traditional stablecoins for trading derivatives, stating that traders can avoid forfeiting substantial value by using the token. USDe offers yield based on both staking rewards and a delta-neutral trading position, which Young believes is a key advantage.
Risks and Concerns
However, USDe is not without its risks. The token is backed by a delta-neutral position that balances a basket of staked Ether derivatives with Ether shorts on centralized exchanges. This approach is designed to generate a yield as long as funding rates are positive, but it also carries the risk of reduced yields or asset depletion if funding rates turn negative for an extended period. Additionally, there are concerns about custodial counterparty risks.
Bitget’s Expansion of USDe Use Cases
In addition to using USDe as collateral for perpetual futures, Bitget will also be offering the stablecoin as a savings product within its “Earn” program and integrating it into spot order book pairs. This multi-faceted integration of USDe aims to provide Bitget’s users with more flexibility and potential yield opportunities.
“Our goal is to ensure that no trader has to forgo that value any longer,” said Ethena Labs founder Guy Young.
As the crypto industry continues to evolve, the integration of innovative stablecoins like USDe into mainstream platforms like Bitget highlights the ongoing efforts to enhance the user experience and financial opportunities within the digital asset ecosystem.