Ethena Labs has partnered with Deribit to introduce USDe, a reward-bearing stablecoin, as a collateral for margin trading. This collaboration aims to enhance liquidity and offer traders additional incentives, driving innovation in the crypto space.
The partnership is a big step toward improving Deribit’s users’ trading experience by providing a more exciting and lucrative margin trading option.
What Will The Partnership Include?
Now that Deribit’s margin trading system has USDe, a stablecoin created by Ethena Labs, traders will be able to utilize it as collateral for their positions and receive rewards.
With the security of a conventional stablecoin and the opportunity to receive rewards on their collateral, USDe’s integration attempts to increase the effectiveness of margin trading.
This action is part of a larger trend of innovation in the DeFi market, where traders looking to maximize their profits are increasingly turning to reward-bearing assets.
“By adding a state-of-the-art, incentive-based collateral option, our cooperation improves Deribit’s services and draws in both institutional and individual traders”, the platform stated in its official announcement.
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Traders can now handle their holdings more freely and take advantage of extra incentives by using USDe, which could increase platform liquidity.
By strengthening the value proposition for consumers and promoting the general expansion of the digital asset ecosystem, this collaboration places Ethena Labs and Deribit at the forefront of cryptocurrency innovation.
Derbit’s Partnership Not New For Ethena Labs
Over the time Ethena labs has partnered with multiple exchanges for the proliferation of USDe.
Previously, one of the top cryptocurrency trading sites in the world, MEXC, had made a significant investment of $20 million in USDe, an Ethena-created synthetic dollar, in an effort to promote stablecoins.
This action demonstrated MEXC’s strong commitment to promoting innovation in the cryptocurrency space and increasing the use of stablecoins. The exchange’s investment division, MEXC Ventures, has also contributed $16 million to Ethena.
USDe’s Contribution Towards Growing Popularity of Stablecoins
Since it provides a distinctive, reward-bearing paradigm, Ethena Labs’ USDe is significantly contributing to the growing popularity of stablecoins.
USDe enables users to get rewards on their holdings, making it more appealing to traders and investors looking for stability and growth potential than standard stablecoins. This novel feature makes USDe a more dynamic asset inside the decentralized finance (DeFi) ecosystem and expands the usefulness of stablecoins beyond basic value storage.
Retail and institutional investors are adopting stablecoins more widely thanks to Ethena Labs’ integration of USDe into well-known platforms like Deribit.
Its liquidity and market presence are increased by the incentive for users to hold and utilize USDe as collateral in margin trading and other DeFi operations.
Also Read: Ethena’s Announces 2025 Roadmap Of Bridging DeFi & Traditional Finance With iUSDe