Ethena is developing a synthetic dollar system on the Ethereum blockchain, aiming to offer a banking-independent, crypto-native monetary solution. This includes a novel savings tool known as the "Internet Bond." The protocol's synthetic dollar is named USDe.

The "Internet Bond" is designed to generate yield through a combination of staked Ethereum and profits from perpetual and futures markets. To maintain the stability of the USDe peg, the protocol employs delta hedging strategies against its collateral.

While sometimes described as a stablecoin, the product is more akin to a vault employing a specific strategy. If the strategy is unsuccessful, the vault may become less attractive to crypto investors. The strategy may also have an impact on funding rates across the crypto trading landscape.