What is Ethereum? Instructions for hunting airdrops for the Ethena project
Ethena a recently launched project, has attracted great attention from the community not only because of the product but also from the names behind investing in the protocol such as Arthur Hayes, Binance Labs, Dragonfly ... So what is Ethena?
What is Ethereum?
Ethena is a Liquid Staking Derivative (LSD) protocol on Ethereum, supporting increased profits for users through the issuance of a synthetic dollar called USDe.
Users can mint USDe by mortgaging liquid staking tokens (LST) such as tETH, rETH... to earn fixed profits through Internet Bond (roughly translated as Internet Bond) or use to participate in activities. dynamic in DeFi.
At the same time, Ethena's USDe can limit liquidation risks for holders in highly volatile market conditions through the use of Delta-Hedging strategy instead of Collateral Debt Position such as many other types of synthetic assets.
Ethena's main product is the USDe coin.
USDe is Ethena's synthetic dollar under the ERC-20 standard, collateralized by LST coins on Ethereum and operates based on the Delta-Hedging mechanism to ensure stable value and generate income for holders. specifically:
- Stabilization:
Using Delta-Hedging: The value of USDe achieves stability by using derivatives through an unleveraged short position based on Delta-Hedging, instead of Over-Collateralization ). Accordingly, deposited LSTs will be able to open short positions on exchanges as soon as users mint USDe to ensure the value of USDe is always stable at a neutral level.
Control the mint and redeem process: The project allows users to mint USDe and redeem LSTs after successfully performing KYC. The KYC process will be directly controlled and managed by Ethena Labs to ensure the supply of USDe, thereby maintaining a stable value of USDe.
- Ability to generate profit:
Internet Bond: Protocol that generates profits for USDe holders using the Internet Bond solution. Specifically, users can combine rewards from LST staking and funding rates in the derivatives market to create bonds, which act as a USDe-specific savings method, providing profitability. profit (about 10%) for USDe holders for a fixed period.
sUSDe: After successfully minting USDe, users can continue to use USDe to stake into the protocol and receive sUSDe. By holding sUSDe, users can receive a yield of up to 24%.
Ethena's operating situation 
With attractive yield levels and a large number of participants, many investors expressed concerns about Ethena's operating mechanism as well as the sustainability of the USDe coin.
Although the value of USDe is guaranteed by a fairly safe mechanism, the project has also issued warnings about risks that can cause USDe to lose peg, including: funding risks, risks related to trading platform, liquidation risk and collateral risk. Users can learn more about possible risks here.
Besides, the project allows users to view indicators about USDe such as supply, price, Insurance Fund (including different stablecoins to ensure the value of USDe, currently exceeding the threshold of 2 million USD)...
Guide to hunting airdop
Ethena Up to now, Ethena only allows Market Makers selected on the whitelist to send LST to have the right to mint USDe. However, retail investors can still have the opportunity to receive Shard-based airdrops by buying USDe through 6 stablecoins, including: USDT, USDC, DAI, FRAX, crvUSD, mkUSD), staking USDe to receive sUSDe, Provide liquidity into supported protocol pools and invite friends to join.
Shard calculation criteria are according to the table below, and users can receive an additional 10% shard points by inviting friends through the referral link.
Buy USDe
Users can buy USDe by following these steps:
Step 1: Access Ethena's App here.
Step 2: Perform the wallet connection operation by selecting Connect Wallet in the top right corner. Ethena currently supports popular wallets such as MetaMask, Coin98 Super Wallet, Ledger...
Step 3: The interface displays Ethena's policies, users should read to grasp the necessary information, then select Accept.
Step 4: On the toolbar, select the Buy feature.
Step 5: Select the type of asset you want to sell, enter the amount you want to buy and select Buy. The actual amount of USDe the user receives will be calculated after deducting the inflation fee (0.1%) and gas fee.
Stake USDe
Users can stake USDe following these steps:
Step 1: On the toolbar, select the Stake feature.
Step 2: Enter the amount you want to stake and select Stake. The actual amount of sUSDe the user receives will be calculated after deducting the gas fee. Note, users can claim back USD after 7 days of unstaking.
Liquidity Provision (LP)
Users can provide liquidity into pools on Ethena by following these steps:
Step 1: On the toolbar, select the Liquidity feature.
Step 2: In the right corner, select the asset pair you want to provide liquidity, such as USDe, sUSDe/sDAI, USDe/USDC...
Step 3: Enter the quantity as needed and select Lock.
Invite friends (Ref)
In addition to the above methods, users can earn additional Shards reward points by inviting friends to join the project through the referral link. Accordingly, for anyone who participates through the referral link, the user will receive an additional 10% of the shard points they accumulate. The process is as follows:
Step 1: On the toolbar, select the Shards feature.
Step 2: Copy the referral link and share it on social networking platforms to invite friends to join.
What is Ethereum's token?
Currently, Ethena has not announced any tokenomics of the project.
Ethena project team and investors
Project team The project development team is made up of members and projects with experience in the field of technology, including:
Arthur Hayes: Founding Advisor.
Leptokurtic: Founder and CEO.
Wintermute: Heads of Engineering.
Investors
According to the announcement from the project, Ethena successfully called for 3 rounds of capital, of which the 2/2024 investment round from Binance Labs has not been announced, the remaining two rounds received a total investment of 20.5 million USD from a number of large funds in the project. markets such as Dragonfly Capital, Arthur Hayes, Binance Labs, OKX Ventures, Bybit, Deribit...
Similar projects
Some similar projects to Ethena include:
Lybra: A Liquid Staking Derivative (LSD) protocol, expected to increase flexibility for asset types on Ethereum, while boosting profits for users by developing interest-bearing stablecoin eUSD.
ZeroLiquid: A lending protocol belonging to the Liquidity Staking Derivatives (LSDs) puzzle on Ethereum, allowing users to mortgage LSD tokens to borrow at 0% interest without the risk of liquidation.
