Sats Campaign Update: $ENA

Introducing $ENA Rewards

As of April 8th users will be able to lock $ENA in Ethena for a minimum 7-day lock period.

Locked $ENA will receive the highest number of Sats earned at 30x per day.

More importantly, if a user holds a minimum of 50% in $ENA relative to their balance of USDe earning rewards across any platform, all of their rewards on their total $USDe position will be boosted by 50%.

For example, if a user has a $10,000 USDe balance split in the following way:

  • $2,000 in 7 day locked USDe

  • $2,000 total USDe position on Gearbox or Morpho

  • $2,000 Curve LP position with USDe locked on Ethena

  • $2,000 sUSDe holding

  • $2,000 USDe bridged to an eligible L2

The user would need to lock a minimum $5,000 $ENA position to be eligible for the boost. A UI update will be provided on April 9th for users to track this for their own wallets.

The majority of users who participated in Season 1 will have received a fully transferable amount of $ENA which they can lock and receive this boost. To be clear, users who lock $ENA will remain able to participate in governance. This program is intended to align the highest rewards with the users who are most long-term aligned to the Ethena ecosystem.

For absolute clarity: team and investor allocations, which are locked on vesting schedules, will not be able to participate in the $ENA lock - only circulating $ENA which was received from the first airdrop or otherwise acquired on the open market will be eligible.

The ENA lock initial cap will be $200m and will be adjusted to increase going forward, with a cooldown period on locked ENA of 7 days.

Additional Updates

A new season means new options for rewards, and those will include some new partnerships:

MakerDAO and Morpho

As we mentioned last week, MakerDAO voted to increase the caps on the Morpho USDe and sUSDe/DAI pools from $100m to $600m, with capacity to increase the allocation up to $1bn.

The increased caps will now start to be deployed with Maker adding the next 100m allocation today before deploying the remainder gradually to ensure a controlled and measured rollout.

As a reminder, Morpho users will earn the following for depositing collateral and borrowing:

  • 20x sats on USDe collateral

  • 5x sats on sUSDe collateral

The use of leverage is being actively monitored by the relevant teams in an attempt to mitigate risk building up across DeFi in a short period of time. As a result, Maker has started with this initial $100m increase, which will be monitored closely prior to any future increases.

Please review this thread before using any money markets or leveraged platforms.

Pendle Pools

The original Pendle USDe pool on ETH L1 has been popular, with the now $400m cap having approximately $30m capacity left.

After listening to feedback from the community (primarily that ETH gas prices were prohibitive to some users), new upcoming pools on cheaper networks will be incorporated, specifically on:

  • Mantle

  • Arbitrum

  • Zircuit

The above pools will have $100m initial caps each, with varying maturity dates for each pool.

The Mantle pool in particular not only enables cheap trading of USDe YT, PT or LP to earn Sats, but also introduces the ability to earn Eigenlayer points.

Mantle USDe pool details:

  • 20x sats per USDe held in USDe YT or LP position

  • 200m cap

  • Eigenlayer points: 0.0012 EL per USDe per day

  • Cap on Eigenlayer points will be 200m * 0.0012 * 115 days = 13,800,000 points

Raised Caps on Curve LP Pools

The initial Curve pool incentives have had little adjustment since the first season of the shard campaign. As the Sats campaign begins, some Curve LP incentives for USDe pools will be updated as follows:

  • USDe/DAI pool cap will be raised from 15m to 30m, earning 30x sats

  • USDe/USDC pool cap will be raised from 25m to 30m, earning 30x sats

  • USDe/mkUSD will no longer be earning rewards as of today.

As a reminder, after Prisma’s recent exploit, the cooldown period on mkUSD pools was immediately removed, allowing users to adjust their position immediately. That is still the case today and the mkUSD pool is not subject to cooldown restrictions.

The mkUSD supply has been reduced significantly, and as a result the LP position with USDe constitutes too large of a portion of total supply. The potential to add these pools back to the campaign if liquidity conditions return for mkUSD will be assessed on an ongoing basis.

Exchange Wallet Integrations

Users locking USDe for at least 7 days through CEX Web3 wallets can get an additional 20% Sats boost. The CEX wallets are:

  1. Binance

  2. Bybit

  3. OKX

  4. Bitget

These CeFi wallet integrations will be live on 10th April at 12pm UTC.

Other Updates

  • Users will no longer earn sats in cooldown periods

  • A new feature in the app will show a minimum USDe amount that vestees must hold in their wallets to remain eligible for ENA tokens subject to vesting.

  • Our UI now tracks Ethena’s BTC positions as well as perpetual future metrics for BTC contracts

  • Merchant Moe: Provide liquidity and lock LP tokens to earn 30x Sats (20m total locked cap of which $10m is USDe)

Updates on the Sats campaign will be provided on an ongoing basis with plenty more integrations coming very soon.

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