• The Ethena Foundation has approved Wintermute’s proposal to share Ethena’s fee revenues with ENA token-holders, introducing value alignment for staked ENA.
• Ethena Labs integrated sUSDe into Aave, enabling borrowing billions of stablecoins with high-yield benefits and enhanced user incentives on the platform.

Ethena Labs, a DeFi protocol renowned for its synthetic dollar stablecoin USDe, has made headlines recently for two significant developments that solidify its position in the decentralized finance (DeFi) ecosystem.

On November 15, the foundation approved a proposal by cryptocurrency market maker Wintermute to share a portion of its fee revenues with ENA token holders. This move aims to align the growth of the Ethena protocol with its tokenholders’ interests. Meanwhile, Ethena Labs achieved another milestone with the integration of sUSDe into the Aave platform, enabling substantial borrowing opportunities.

Fee Sharing for ENA Tokenholders

Wintermute’s proposal, first introduced on November 6, highlighted the absence of value accrual mechanisms for staked ENA (sENA).

“The Ethena Foundation is pleased to share that the proposal to enable an $ENA fee switch has been approved by the Risk Committee,” Ethena’s governance forum announced.

The foundation is now working on finalizing the parameters for fee sharing, which are expected to be crystallized by November 30.

Launched in April, ENA can be staked to earn sENA, which lacked direct revenue benefits until this proposal. Wintermute emphasized in its proposal that the Ethena Protocol generates substantial revenue, showcasing the market fit of its stablecoin, USDe.

Since its launch in February, USDe’s circulating supply has surged to $3.2 billion. In addition to its growth, Wintermute began accepting USDe as collateral for spot and derivatives trading on October 25.

sUSDe Integration with Aave

On another front, Ethena Labs integrated sUSDe as collateral on Aave, enabling borrowing billions of stablecoins against it on the Ethereum mainnet and Lido instance. Aave users can now enjoy sUSDe’s high yield—reportedly around 30%—and borrow other stablecoins like USDS and USDC at competitive rates.

Ethena detailed integration parameters such as a liquidation threshold of 92% and a loan-to-value (LTV) ratio of 90%. This development also ties into Ethena’s Season 3 campaign, where users provide sUSDe as collateral gain points and 10x sats rewards.

Commenting on these advancements, Wintermute’s governance proposal stated, “It’s time to establish clear alignment between ENA holders and the underlying fundamentals of the protocol.”

As of writing, Ethena’s ENA token is trading at $0.5489, marking notable gains of 6.44% over the past week and 38.13% over the past month. With these updates, Ethena continues to enhance its influence in the DeFi space, bridging innovative mechanisms with user-centric growth strategies.