We’re excited to welcome ENA, the native token of Ethena, to Bitso!
Ethena is the protocol behind USDe, a synthetic dollar designed to remain stable without relying on banks or traditional fiat systems. With its innovative structure and rapid growth, Ethena is building a new kind of digital dollar—one that’s fully on-chain, accessible, and independent.
What is Ethena?
Ethena is a decentralized finance (DeFi) protocol that offers a crypto-native alternative to traditional stablecoins. Instead of being backed by fiat reserves held in a bank, Ethena uses staked ETH and derivatives to offer and collateralize a dollar-pegged asset called USDe.
Its mission? To provide users with a reliable, censorship-resistant, and scalable dollar that lives entirely on the blockchain.
How does Ethena work?
Here’s a simplified look at how the Ethena system operates:
- Users deposit ETH or LSTs (liquid staking tokens), like stETH, as collateral.
- The protocol opens short positions in futures markets to offset any ETH price movement—this is the delta-neutral* strategy.
- In return, users receive USDe, a synthetic dollar that stays close to $1.
- Users can also participate in the Stability Module** by depositing stablecoins and earning ENA rewards.
- ENA holders govern the protocol and help decide its future direction.
*Delta-neutral strategy: a trading approach that aims to eliminate exposure to price movements in the underlying asset—so your overall position doesn’t gain or lose value when the market moves up or down.
**The Stability Module is a feature in the Ethena protocol where users can deposit stablecoins (like USDT or USDC) to help support the system. In return, they receive ENA rewards.
A simple analogy: Ethena as a see-saw
Ethena wants to keep the value of its digital dollar (USDe) stable—even though it uses ETH, which goes up and down in price. To do that, it balances two forces against each other—like a see-saw:
- On one side, you have ETH or stETH, which can go up or down in price.
- On the other, you have a short futures position that moves in the opposite direction by betting that ETH’s price will go down.
- When ETH rises, the short position loses value—but the ETH goes up.
- When ETH drops, the short gains—but the ETH loses.
The two sides cancel each other out, keeping the balance, and the price of USDe steady. That’s how Ethena maintains stability without needing to hold dollars in a bank as collateral.
Why ENA stands out
- Breakthrough stablecoin model: Ethena is one of the first protocols to create a scalable, bank-free synthetic dollar.
- Massive adoption: USDe surpassed $2 billion in supply within months of launch.
- Efficient and transparent: Delta-neutral strategies minimize volatility without relying on fiat or centralized custodians.
- High utility: ENA powers governance, user rewards, and protocol growth.
In short: ENA is not just a token—it’s the engine behind a new class of stable digital assets.
How to get started with ENA on Bitso
- Sign up to Bitso: Create your account through our app or website.
- Buy ENA: Swap your USDC for ENA using Bitso’s conversion feature.
- Track the market: Use Bitso’s tools to monitor price movements and follow Ethena’s evolution.
⚠️ For now, ENA is only available for conversions on the main Bitso app and is not available on Bitso Alpha. This means you can buy and sell ENA, but deposits and withdrawals to external wallets are currently disabled. However, you can send and receive ENA with other Bitso users via Bitso Transfer, making it easy to move your crypto within the Bitso ecosystem.
Disclaimer:
ENA is a decentralized token designed to support the Ethena protocol and its vision of creating a crypto-native, bank-free synthetic dollar. While the protocol introduces innovative mechanisms like delta-neutral strategies and on-chain governance, the value of ENA remains speculative and subject to market forces.
The digital asset market is inherently volatile, and prices can fluctuate significantly over short periods of time. This article is intended for informational purposes only and does not constitute financial advice. Bitso encourages all users to conduct their own research (DYOR) before buying, selling, or using any digital asset.
