Crypto market maker and liquidity provider Wintermute has proposed a fee switch framework for the Ethena protocol.<\/p>\n
The main objective behind this move is to establish revenue alignment with sENA token holders and clarify Ethena\u2019s protocol revenue structure.<\/p>\n
According to Wintermute, sENA holders \u2013 those who have staked their Ethena tokens \u2013 do not benefit directly from Ethena\u2019s revenue growth despite the protocol\u2019s success with the USD-pegged stablecoin, USDe. The latest proposal<\/a>, submitted to the Risk Committee on Wednesday, suggests enabling a future revenue allocation to sENA to align token holders with Ethena\u2019s financial performance.<\/p>\n While the proposal refrained from providing specific figures for revenue allocation or a detailed fee-switch model, Wintermute recommended that Ethena focus on establishing the \u201coptimal form\u201d for the fee switch, especially considering the growth of USDe\u2019s supply and yield competitiveness for staked assets.<\/p>\n Wintermute also suggests setting a roadmap with clear milestones \u2013 like circulation and revenue targets \u2013 before implementing revenue-sharing. To support this, they request full disclosure from the Ethena Foundation on how protocol revenue is currently and will be distributed. Any final decision on the proposed changes would need approval through a vote by ENA and sENA holders.<\/p>\n \u201cWe kindly request that the Foundation provide clarity on whether 100% of Ethena protocol revenue has been allocated or retained solely for the benefit of the protocol so far. Additionally, we ask for confirmation that future revenues will continue to be managed within the Ethena protocol, ensuring they benefit the protocol and remain governed by ENA\/sENA.\u201d<\/p>\n Ethena is a synthetic dollar protocol on Ethereum that issues the stablecoin USDe, designed as a scalable and censorship-resistant digital currency pegged to the USD.<\/p>\n This year USDe has gained traction, offering yields up to 17%, which has prompted comparisons to Terraform Labs\u2019 UST, the controversial algorithmic stablecoin that collapsed and sparked a broader crypto crisis over two years ago. However, market experts assured<\/a> that USDe\u2019s yield mechanism is \u201cunique.\u201d<\/p>\n Currently, USDe\u2019s market cap has grown to $2.83 billion, boosted by a broader crypto market rally.<\/p>\n The post Wintermute Pushes for Ethena Fee Switch to Benefit sENA Token Holders<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Crypto market maker and liquidity provider Wintermute has proposed a fee switch framework for the Ethena protocol. The main objective behind this move is to establish revenue alignment with sENA token holders and clarify Ethena\u2019s protocol revenue structure. Wintermute\u2019s Fee Switch Proposal According to Wintermute, sENA holders \u2013 those who have staked their Ethena tokens […]<\/p>\n","protected":false},"author":0,"featured_media":18796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-18795","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/18795"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18795"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/18795\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/18796"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Ethena\u2019s USDe<\/h2>\n