Ethena's synthetic dollar USDe saw a massive infusion of capital on Solana, with supply surging over $450 million in just four days. This rapid growth makes Solana the dominant network for USDe outside of Ethereum, boasting nearly ten times the supply circulating on HyperliquidX.
Unlike USDC or USDT, USDe is not backed by traditional bank reserves. Launched by Ethena Labs in February 2024, it maintains its peg through a delta-neutral hedging strategy. The protocol holds crypto collateral while opening short positions to offset price risk, effectively creating a synthetic dollar.
The model has proven successful, making USDe the third-largest dollar-pegged asset in DeFi within a year. As of April 2025, total supply reached $4.7 billion, with 70% of backing in liquid stablecoins and a 101% collateralization ratio. LayerZero’s Omnichain Fungible Token standard enables USDe to move seamlessly across blockchains, reducing bridge-hack risks.
For investors, key considerations include the sustainability of positive funding rates in perpetual futures markets and the concentration risk of nearly ten times more USDe on Solana than on HyperliquidX. A disruption on Solana could stress USDe redemption mechanisms.