Season 3 Highlights

March 23rd marked the end of Ethena Season 3 and the beginning of Season 4. At the start of Season 3, USDe supply was $3bn and had just been integrated on Bybit and Bitget as the first centralized exchange partners, with minimal traction on Aave as sUSDe was yet to be integrated.

During Season 3, USDe was the fastest asset to $5bn supply in crypto history and peaked over $6bn, with over $1bn of sUSDe in Aave alone. USDe flipped USDC on Bybit with over $800m held on the exchange, with new CEX integrations announced with Deribit, Gate and MEXC. sUSDe APY averaged 16.7% in Q4.

In the last few weeks alone, Ethena handled what many thought would be a “worst case scenario” for USDe in the form of the Bybit hack, demonstrating the benefits of off-exchange custody and USDe’s design choices, as well as launching our own blockchain initiative in collaboration with Securitize called Converge.

sENA holders have received a portion of the Derive airdrop, as well as slashed Season 2 rewards, and are due to receive a portion of both Ethereal’s and Echelon’s token supply. Ethereal, the flagship Ethena Network perpetuals DEX, has amassed over $700m in TVL pre-launch with their initial testnet opening next week.

Season 3 Distribution

Initially, we announced late April as the period for the ENA Season 3 distribution. This date may be brought forward ahead of the end of April, but no later.

In order to facilitate an earlier distribution date, there will be no eligibility checker. If you see S3 points for your wallet in Ethena UI, you should check Liquifi for your airdrop on the distribution date. More details on the Season 3 distribution % and the exact date will follow shortly.

Season 4 Summary

Users will automatically begin accruing Season 4 rewards starting on March 24th. Additionally, users who have previously participated in Ethena rewards programs will automatically receive a boost to the Season 4 rewards. Season 4 Rewards are as follows:

• USDe used as collateral in money markets such as Aave or Morpho earn 20x, while sUSDe used as collateral in money markets earns 5x.

• Pendle USDe pools earn the highest multiplier at 60x, while existing sUSDe pools earn 30x rewards, the highest for sUSDe.

• For the first time, users will be able to earn multipliers on their PT-USDe and PT-sUSDe deposits in money markets.

  • PT-USDe will earn 2x while PT-sUSDe will earn 1x. Morpho currently lists both assets as collateral, while Aave is expected to list Ethena May maturities shortly having posted their pricing risk analysis of PT tokens last week.

• LP positions on any protocol with either USDe or sUSDe pairs earn 30x on the total value of the LP position.

• USDe or sUSDe vaults earn 30x and 5x, respectively. An example of a vault is Concrete’s USDe and sUSDe vaults or Ethereal’s USDe vault.

• USDe locked with Ethena continues to earn 20x

• Staked ENA continues to earn 40x rewards as the highest multiplier outside of Pendle. sENA continues to earn Derive, Echelon and Ethereal rewards.

• Certain TON ecosystem partners will be integrated in Season 4. More details to follow.

• To streamline reward distribution and minimize dilution, we are discontinuing integrations associated with trivial or non-meaningful amounts of capital or neglible organic activity. Consequently, certain projects will no longer qualify for Ethena rewards, allowing pools with higher engagement to receive an increased share.

  The general cutoff for earning rewards in Season 4 will be any protocol that has a total TVL for Ethena related pools of less than $5m. The Ethena team will use their discretion to include a handful of protocols below this cutoff.

  For the final list of eligible integrations, please refer to https://app.ethena.fi/liquidity on the airdrop date.

Estimated Distribution of Points

FAQ

• How do I claim my sENA?

Users can see the amount of rewards they earned in S3 at app.ethena.fi, and claim in Liquifi on the distribution date.

• How do I know if I’m subject to vesting or not?

In Liquifi you will see amounts for unvested sENA. The top 2k largest wallets as measured by rewards are subject to vesting after Season 3. These grants will be viewable at https://app.liquifi.finance

• 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 23rd of March, will I still be eligible?

Yes. There are no holding requirements for Season 3.

• Is all my sENA subject to vesting?

For the top 2000 wallets (measured by rewards earned), one third of their sENA will be subject to vesting requirements. All rewards earned from USDe Pendle pools are excluded from this calculation.

• Do I start earning Season 4 rewards from the 24th of March?

Yes. Users will automatically begin accruing Season 4 rewards starting on March 24th. Additionally, users who have previously participated in Ethena rewards programs will automatically receive a boost to the Season 4 rewards.

• If I withdraw my positions before the end of the campaign, do I keep my rewards?

Yes, for season 3, there are no holdings requirements.

• Are there any other restrictions that could impact my ability to receive an sENA distribution from Season 4?

All Terms published at https://docs.ethena.fi/resources/terms-of-service apply to users with respect to campaigns and sENA distributions.

For example, Prohibited Persons (as defined therein) are not eligible to participate in any Ethena campaigns and are not eligible to receive sENA distributions. As always, users are encouraged to read the Terms of Service in full to determine their eligibility status.