Recap:

September 2nd marks the end of Season 2. Since the beginning of Season 2, USDe has grown from a supply of ~1.3b to just under 3.0b, and was the fastest USD-pegged asset to reach 3.0b in crypto history.

During this period the Ethena protocol generated >$105m in revenue and distributed 54m USDe in rewards to the sUSDe staking contract for an average APR of ~15% despite challenging market conditions.Ethena’s USDe supply is now:

>Nearly 2x larger than the entire tokenized treasury RWA market

>10x larger than the entire onchain ETH open interest for every DEX combined

Higher than all stablecoins on TON, Blast, Optimism, Aptos and Starknet…combined.

Most importantly, Ethena withstood multiple large-scale market corrections and reductions in open interest with no significant depegs, lapses in redemptions, or adverse events relating to the backing and hedging operations. With each passing stress event we hope trust is built with our users in the resilience of the protocol.

Ethena has also made significant inroads to expanding the utility of USDe across multiple areas of both DeFi and CeFi including:

Chain expansions to:

• Solana

• Mantle

• Blast

• Arbitrum

• Base

Adding USDe as collateral to major CEXs:

• Bybit Launch

• Bitget Launch

As well as high profile DeFi integrations including:

• Aave Launch

• Symbiotic Launch

• LayerZero integration

Summary for End of Season 2 and Introducing Season 3:

1. Season 2 rewards will end on the 2nd of September.

2. 5% of the total ENA supply will be distributed as rewards for Season 2.

3. Season 3 points will automatically begin accruing on 2nd of September.

4. Token allocation for Season 2 will be distributed on the week of 30th of September following the final vesting date for Season 2 on the 29th of September.

5. Users will be able to check their ENA claim amount shortly after Season 2 ends at claim.ethena.fi.

6. There is no longer a requirement to lock any future ENA received to meet vesting requirements. Users are free to use their ENA as they see fit.

7. Any user who reduces their USDe balance in their wallet before the token distribution below their 30d average balance as of the snapshot of 1st September, will have their token allocation reduced proportionately (by their % shortfall) and redistributed to other users in locked ENA or sENA (introduced below) pools. Pendle YT tokens will not count towards the minimum required balance of USDe.

8. In-line with the initial distribution, the largest 2k wallets will be subject to a lockup and vesting period of 50%, with linear unlocks over 6 months.

9. Any unclaimed tokens or unvested tokens which are foregone by users who trigger item VII above will be re-allocated to loyal users who continue to participate in the Ethena ecosystem via holding sENA.

10. Users who participated in Season 2 or Season 1 who continue participating in the Ethena ecosystem will receive boosted loyalty points in the third season of incentives.

Claiming ENA:

After Season 2 ends, users will be able to view the amount of ENA they will receive at claim.ethena.fi on September 9th, and users will be able to claim their ENA on September 30th.

NOTE this is the ONLY official Ethena claim link. If in doubt, please go through app.ethena.fi and proceed to the “Claim” tab directly and in the interest of caution, do not click on any links from third parties claiming to be associated with Ethena.

Unclaimed tokens will only be redistributed to other users via sENA and will not be retained by the Ethena core contributors or the Foundation.

Introducing sENA:

Previously users were able to lock ENA with a 7 days cooldown in order to receive boosted rewards and the highest multiple available for ENA. Locked ENA was not composable with the rest of DeFi.

We are now introducing sENA which is a liquid receipt token with the same 7 day cooldown.

sENA should present minimal operational difference from a user’s perspective from locked ENA in terms of cooldown duration; however, the liquidity and transferability will allow users to utilize the asset in a variety of DeFi applications.

sENA will now earn the largest daily multiplier for rewards at 40x in Season 3 and will be composable with the rest of DeFi, including Pendle, money markets, staking platforms, and any other third-party applications that choose to integrate it.

We will be adding a migration tool for locked ENA holders to move into sENA, pictured below. If you hold locked ENA you will be required to move into sENA to earn rewards in season 3. Users season 2 distributions will be unaffected.

There will be no requirement following receipt of this distribution to hold sENA for any lockup or other vesting conditions.

Distribution Conditions:

Similar to Season 2, the top two thousand largest wallets will be subject to a lockup and vesting period of 50%, with linear unlocks over 6 months.

A snapshot of USDe balances was taken before the end of Season 2 on the 1st of September, measuring users’ 30d average USDe balance. Users that have been subject to vesting must maintain at least their respective snapshot USDe balance to keep the same amount of ENA subject to vesting restrictions. The requirement is applied on a pro rata basis - for example, if a user’s USDe balance is 10% below their minimum required balance, they will lose 10% of locked ENA.

Pendle YT tokens will not be included in the calculation of the minimum required USDe balance.

Any ENA that is foregone as a result of not meeting vesting requirements will be reallocated and distributed to sENA pools. This will happen on a monthly basis as those additional rewards are distributed to the sENA contract.

Season 3 of the Campaign:

Season 3 will run for 6 months, until March 23rd 2025.

Season 3 rewards will be simplified as follows, and updated in the application shortly, but in summary:

i) USDe held in any applications listed on Ethena Liquidity dashboards such as Morpho, Aave, Pendle or Curve LPs will receive 20x rewards

ii) sUSDe held in applications such as Morpho, Aave, or Curve LPs will receive 5x rewards

Any new USDe Pendle pools with USDe and with 3 month maturity measured from the launch of the pool will receive 25x rewards, and 6 months maturity 30x rewards

Any new sUSDe Pendle pools with USDe and 3 month maturity will receive 20x rewards, and 6 months maturity 25x rewards

Any user who participated in either of the last two previous campaigns will receive 10% boosted rewards for participating in Season 3 assuming their vesting conditions continue to be met.

Existing users don’t need to take any action to start earning boosted rewards in the Sats Campaign. Users can track points earned and their positions in our new “Portfolio” page pictured below:

FAQ:

How do I claim my ENA?

After Season 2 ends on September 2nd, users will be able to view the amount of ENA they will receive at claim.ethena.fi, and users will be able to claim their ENA on the week of September 30th.

NOTE this is the ONLY official Ethena claim link. If in doubt, please go through app.ethena.fi and proceed to the “Claim” tab directly and in the interest of caution, do not click on any links from third parties claiming to be associated with Ethena.****

Users have 30 days to claim before unclaimed ENA will be reallocated to other users. This does not apply to any ENA subject to vesting conditions.

How do I know if I am subject to vesting or not?

In Liquifi you will see amounts for unvested ENA. The top 2k largest wallets as measured by sats were subject to vesting after Season 2.

Why do smaller wallets receive no vesting conditions?

Users with a smaller wallet balance would experience significant friction via gas fees vis-a-vis the potential rewards. Vesting was not implemented for these users to acknowledge this aspect.

If I unstaked/unlocked before the 1st of September snapshot, will I still be eligible?

Yes. So long as your wallet USDe balance does not fall below the 30 day average from the 1st of September snapshot, your wallet will be eligible.

Do I continue earning rewards after the 2nd of September?

Yes. Users will automatically begin accruing Season 3 rewards starting on September 2nd. Additionally, users who have previously participated in Ethena rewards programs will automatically receive a boost to the Season 3 rewards.

Is all my ENA subject to vesting?

If you are in the top 2000 wallets measured by sats earned, 50% of your ENA will be subject to vesting requirements.

Pro-Rata Vesting

• Similar to Season 2, a snapshot of USDe balances was taken before the end of Season 2 on the 2nd of September, measuring a users 30d average USDe balance. Users who fail to maintain their minimum balance will fail to meet vesting requirements and will lose some of their unvested ENA.

• The amount of ENA a user loses after failing to meet vesting requirements is measured pro rata based on their shortfall compared to their minimum USDe balance. If a user is 10% below their minimum balance, they will lose 10% of their unvested ENA.

• Any unvested ENA that is lost will be returned to sENA holders.

Are there any other restrictions that could impact my ability to receive an ENA distribution from Season 2?

As for all other seasons, all Terms published at https://ethena-labs.gitbook.io/ethena-labs/resources/terms-of-service apply to users with respect to campaigns and ENA distributions. For example, Prohibited Persons (as defined therein) are not eligible to participate in any Ethena campaigns and are not eligible to receive ENA distributions. As always, users are encouraged to read the Terms of Service in full to determine their eligibility status.