Ethena Labs has launched USDtb, a new stablecoin whose collateral depends on the BUIDL fund from BlackRock.
Ethena Labs, an Ethereum-based decentralized protocol, is revolutionizing the stablecoin space with its latest innovation. In a recent update, the protocol announced the launch of a new stablecoin USDtb.
This new stablecoin, in partnership with Securitize, is backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). USDtb introduces a new approach to stablecoins, making it one of the most innovative in the market.
At its core, USDtb functions similarly to popular stablecoins like Circle’s USDC and Tether’s USDT. These assets are backed 1:1 by cash or similar assets. However, unlike other stablecoins, USDtb’s reserve structure is unique. Instead of relying solely on traditional reserves, USDtb’s backing comes predominantly or 90% from BlackRock’s BUIDL fund.
This decision allows USDtb to grow quickly and efficiently without the typical limits other stablecoins face. The BUIDL fund from BlackRock makes USDtb one of the safest and most scalable stablecoins.
Remarkably, its backing is larger than any other stablecoin on the market. USDtb introduces a new risk profile for users, exchange partners, and investors. Notably, it is different from the risks tied to USDe. This independence gives users more flexibility and choice. As a result, USDtb offers a reliable option for users to manage their stablecoins.
In a twist, USDtb is not a standalone product. It also helps the stability of USDe, particularly during market downturns. Ethena’s Risk Committee recently approved using USDtb to support USDe, particularly when funding rates are negative.
This means Ethena can move backing assets to USDtb, improving stability and reducing potential risks tied to USDe.
USDtb’s potential extends beyond being just a stablecoin. Ethena revealed plans to use it as collateral on centralized exchanges. The vision is to offer traders a secure and scalable option to diversify their assets.
This move could become more common as more exchanges adopt similar programs. Ethena is also considering USDtb for Spark’s $1 billion Tokenization Grand Prix, showing its potential for more uses in the future.
Ethena has ensured that security remains a priority. The smart contracts behind USDtb have undergone thorough testing. It passed through full audits from renowned firms such as Pashov, Quantstamp, and Cyfrin.
All audits returned with no high or medium-level findings, demonstrating the robustness of the USDtb system. A community audit by Code4rena further confirmed that USDtb is secure and reliable for users.
This strategy with USDtb is part of Ethena Labs’ broader plan to enhance the stability and scalability of its Decentralized Finance (DeFi) ecosystem. By using USDtb to support USDe and other stablecoin operations, Ethena is creating a more resilient platform to withstand market fluctuations better.
Recently, Ethena teamed up with Derive.xyz, a leading on-chain derivatives platform, to improve liquidity across both protocols. This partnership aims to boost growth for both Ethena and Derive.xyz by offering users more efficient and stable options for trading.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
