USDe supply crossed $600m this morning, only 2 weeks after our public launch. Ethena’s Shard Campaign is currently in its second epoch, after the first filled out in less than a week, bringing over $100m of liquidity to Curve. sUSDe is yielding 33% and USDe-USDT is the 4th highest volume pool on Uniswap.

The team has been taken aback by the growth of USDe and this post aims to highlight the top charts we’re monitoring across perpetual futures, DeFi integrations, and USDe itself.

USDe Growth

USDe supply has passed $600,000,000 with a 7d growth rate of 40%.

That growth has outpaced virtually every stablecoin/synthetic dollar in the industry over their first 100 days launched to the public.

Daily active addresses for USDe have also surpassed most onchain stablecoins/synthetic dollars at about 1k daily active addresses today.

sUSDe supply has crossed $250m. Interestingly, the staking ratio has decreased as the shard campaign has progressed, with just 40% of USDe staked for sUSDe at the moment.

sUSDe is yielding 33% over the last 7 days, up from last week’s average of 24%.

Yesterday was the largest day of USDe minting so far, with over $65m worth of mints.

USDe price volatility has been low as whitelisted market makers can mint/redeem USDe with Ethena for $1, profiting from the arbitrage when USDe demand increases its price above $1.

We can see demand for USDe onchain has kept USDe price consistently above $1 on DEXs.

While its a short sample size, over the last two days USDe peg volatility has outperformed both FRAX and DAI.

Average Peg Volatility since 28th Feb:

USDe: 0.033% ; DAI: 0.040% ; FRAX: 0.047%

DeFi Integrations

One of the biggest drivers of USDe demand has been via DeFi integrations. As part of the second epoch of Ethena’s shard campaign, Pendle’s newly deployed USDe pool is eligible for shards. Specifically, the YT-USDe and wrapped USDe tokens are earning 10x shards, with the YT offering up to 200x leverage at the time of writing.

Since deploying the USDe pool, Pendle has hit all time highs in daily volume in back to back days, with $167m of total daily volume yesterday.

The PT-USDe token, sacrifices shards for a fixed yield of 74% at the time of writing, while LP’s have provided $30m in Pendle USDe liquidity, earning over 200% APY from a combination of swap fees, Pendle incentives, shards and a portion of fixed yield.

Overall, there has been over 90m of USDe wrapped in Pendle in a couple of days, and the cap has been lifted from 100m to 150m as a result of the surging demand.

After incentivizing Curve liquidity in epoch 1 of the shard campaign, there is over $100m of liquidity in USDe Curve pools, with nearly $30m worth of USDe liquidity.

Thanks to demand for USDe, Curve pool weights are underweight USDe, with the most liquid pool, USDC-USDe, split 60:40 USDC:USDe.

The Uniswap USDe-USDT pool was also the 4th largest Uniswap pool by trading volume yesterday, and has done over $500m in total volume since its launch, on just $3m of TVL.

Perpetual Futures

Funding rates have been elevated across the board during this market rally. ETH open interest-weighted funding rates touched 80% yesterday and have consistently settled above 20% annualized over the last two weeks.

ETH open interest rose alongside funding rates, surpassing $8.5bn on major exchanges, up from $6bn to start the year. With increasingly more of ETH’s supply locked for points or staked in the likes of Eigenlayer, it seems more investors are turning to perp markets to get long exposure to ETH.

At $600m supply, Ethena represents roughly 7% of that ETH open interest today on major exchanges.

Reserve Fund

Finally, with the assets backing the protocol yielding over $2m this week, the portion of yield generated by the assets backing unstaked USDe was sent to the insurance fund, worth over $1.3m. This distribution, alongside a transfer of $8m from the recent fundraising round, brings the protocol reserve fund to $11.8m.

More on the recent distributions to the reserve fund here.

We are incredibly excited to witness the growth of USDe in such a short amount of time.

We look forward to checking in again shortly, when USDe supply hits $1bn.