Spot and perps DEX named Ethereal proposed to be built on Ethena Network

Quick Take

  • The Ethena community is discussing a proposal to integrate Ethereal DEX into Ethena’s reserve management.
  • The proposal includes distributing 15% of any potential Ethereal governance tokens to Ethena token holders.

The Ethena community is discussing a new proposal that suggests integrating a decentralized exchange named Ethereal directly into Ethena-related reserve management to become the network’s fully onchain venue for spot and derivative positions backing USDe. The DEX built on the upcoming Ethena Network, according to the proposal.

“We are requesting support from the Ethena community for an integration with Ethereal as a venue for executing hedging transactions,” said the proposal, additionally requesting technical support for Ethereal’s integration with Ethena’s hedging engine.

The proposal, written by “Fells0x,” who is likely a team member of Ethereal, stated that the integration will have mutual benefits, where the exchange could offer a new stream of demand for USDe, as well as more transparency as USDe backing management would be held on-chain.  The Ethereal team also proposed distributing 15% of any potential Ethereal governance tokens to Ethena (ENA) token holders.

Ethereal is expected to launch on testnet within the fourth quarter of this year. According to the proposal, the DEX is designed to process one million operations per second with sub-20ms latency. 

“Ethereal is designed to match centralized exchange performance while maintaining complete self-custody and flexibility to support features such as cross-margin, liquidity automation, and portfolio margin,” the proposal added.

In response to the proposal, Ethena Labs wrote on X that it would “shortly” release a snapshot for voting on it, but no specific date has been mentioned.

Last week, Ethena announced its plan to launch a new stablecoin in collaboration with Securitize, a real-world asset tokenization platform. The stablecoin, UStb, will be backed by BlackRock’s tokenized U.S. Treasuries fund BUIDL. 

USDe is Ethena’s synthetic stablecoin, launched in February this year. According to The Block’s data dashboard, it has around 2.5 billion tokens in circulation

Ethena Labs did not immediately respond to The Block's request for further comments.


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About Author

Danny Park is an East Asia reporter at The Block writing on topics including Web3 developments and crypto regulations in the region. He was formerly a reporter at Forkast.News, where he actively covered the downfall of Terra-Luna and FTX. Based in Seoul, Danny has previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor of Journalism and Business Marketing from the University of Hong Kong.

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