Ethena Labs, known for its synthetic dollar stablecoin that offers native yield, has announced the airdrop of its governance token, ENA. The project aims to distribute 750 million ENA, equating to 5% of its total supply of 15 billion.
As a newcomer in the stablecoin arena, Ethena distinguishes itself by offering a native yield (currently 35% APY) on its USDe stablecoin. This stablecoin is backed by staked ETH and ETH holdings, along with short ETH hedges on exchanges to maintain a balanced position close to the dollar.
The project is already operational, and its stablecoin, USDe, has quickly attained a market cap exceeding $1.4 billion. The spike in interest for this new stablecoin is unsurprising given its competitive yield, backing by well-known investors, including major exchanges like Binance, Bybit, and OKX, and the anticipation of its token airdrop.
Several months ago, Ethena Labs introduced the "Shard" campaign to track users’ contributions to the ecosystem.
Ethena's Shard campaign is divided into several short-term periods called epochs, each rewarding different USDe-related activities. Allocation of the ENA token will be based on the number of Shards users have accumulated during the campaign. Records indicate that over 100,000 users participated.
The token distribution is scheduled for tomorrow. The project has also launched the Binance LaunchPool campaign, and Binance will be the first exchange to list the ENA token.
Following the ENA token’s LaunchPool debut, a confusing incident occurred where a similarly named token was exploited, leading to a loss of 480 BNB tokens, valued at $290,000. Early reports inaccurately claimed “Ethena Labs was exploited”, but the breach was related to another token on Launchpool, unrelated to Ethena Labs, despite the almost identical name.
The ENA token’s introduction opens new governance opportunities for Ethena Labs. Token holders will have the power to vote on crucial governance proposals, shaping the future direction of the Ethena protocol. The initial airdrop also signals the conclusion of the first Shard campaign, hinting at future token distributions by Ethena Labs.
Looking forward, Ethena Labs has an ambitious target for their Shards campaign: reaching a minimum USDe market capitalization of $10 billion, marking a sevenfold increase from today’s figures. This target is within reach, assuming the stablecoin secures adoption and presents compelling incentives.
Lastly, the anticipation surrounding the recent airdrop has buoyed the token’s pre-launch futures, driving a 22% increase in its value. Currently trading at around $0.6, the ENA token is poised to elevate Ethena’s market cap to at least $800 million in the coming week, reflecting the community’s strong interest in the project.
