May 28, 2024

ENA grew by 11% against the backdrop of increased staking rewards.

stablecoins
stablecoins

The Ethena Labs team increased the reward for those locking a large amount of ENA in staking. The token responded with an 11% growth, reaching $1.3. 

ENA grew by 11% amid increased staking rewardsENA grew by 11% amid increased staking rewards
15-minute chart of ENA/USDT on Binance exchange. Data: TradingView.  

According to the updated policy, starting from April 8, the minimum staking period for ENA is seven days. 

For users locking more than 50% of the token’s reserves relative to their balance, the bonus Sats reward is increased by 50%. The earned points are expected to be converted into tokens during a future airdrop. 

To earn additional income, stakers must deposit ENA in an amount of at least $5000. 

“For absolute transparency: those participating in the team’s allocations and investors identified in the transition rights schedules will not be able to lock ENA. Only tokens received from the first airdrop or purchased on the open market will be in circulation,” clarified the Ethena team.

The initial limit for locking ENA is set at $200 million. It is intended to increase over time. 

At the same time, analysts from Lookonchain reported that three wallets withdrew a total of 11.9 million ENA (~$15.23 million) from Binance to participate in staking. 

Furthermore, the community of the DeFi lending platform Frax Finance approved a proposal to invest $250 million in Ethena Labs’ pools. 

As part of the Frax initiative, several “synthetic stablecoin” USDe pools have already been launched through the Curve AMO automatic market maker. 

Earlier, the Ethena Labs team included Bitcoin as collateral for its USDe. Some experts considered this a risk for the primary cryptocurrency and compared the project to the collapsed Terra. 

It is worth noting that in February, the community had doubts about the viability of the stablecoin from Ethena Labs. Among the drawbacks highlighted by analysts was the potential yield inversion. 

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