How It Works
USDe holders deposit their tokens into the Ethena staking contract and receive sUSDe at the current exchange rate. The sUSDe/USDe exchange rate increases over time as Ethena's delta-neutral positions accumulate funding payments and ETH staking yield. Holders do not need to claim or compound — the yield accrues automatically via the rising exchange rate. sUSDe can be redeemed for USDe at any time, subject to a 7-day cooldown period designed to prevent rapid withdrawals during market stress. The yield comes from: (1) perpetual futures funding rates when longs pay shorts, and (2) stETH staking yield from spot collateral.
Backing Type: Synthetic
Synthetic stablecoins use derivative strategies — typically delta-neutral positions combining spot holdings and short futures — to maintain their peg without holding traditional reserves. Yield is generated from the funding rate differential.