Ethena Labs has recently announced a significant increase in rewards for its user base. As part of its “season 2” program, the platform is boosting rewards by 50% for select users.
This decision has triggered a noticeable uptick of 14% in the value of ENA, Ethena’s native cryptocurrency. Currently priced at $1.306, the token has experienced substantial growth since its launch last week at $0.64.
Ethena Labs Enhances User Rewards
The augmented rewards offer a valuable opportunity for users who opt to secure their ENA holdings for a minimum of seven days. Those who commit 50% or more of their ENA relative to their USDe balance, Ethena’s yield-generating stablecoin, will qualify for the 50% boost in rewards.
This initiative is designed to incentivize user engagement and fortify the platform’s ecosystem.
Furthermore, Ethena has introduced a strategy involving Bitcoin (BTC) purchase and simultaneous short selling to generate annual yield via cash and carry trading. This approach has been operational for Ethereum (ETH) since January.
“After the unprecedented growth or USDe since launch, Ethena hedges represent ~20% of ETH open interest as of today. With $25 billion of BTC open interest readily available for Ethena to delta hedge, the capacity for USDe to scale has increased >2.5x,” developers at Ethena Labs said.
The initial cap for the ENA lock stands at $200 million and may be adjusted over time. However, ENA holdings allocated for team and investor purposes, locked on vesting schedules, will not qualify for the ENA lock program.