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Problem: Crypto-Native Money

Crypto needs a decentralized base money asset, and the world has no access to a globally accessible and censorship-resistant savings instrument
Ethena has been built to address the largest and most obvious immediate need within crypto. DeFi attempts to create a parallel financial system, yet stablecoins are the most important financial instrument and remain completely tethered to, and reliant upon, traditional banking infrastructure. Ethena aims to provide a scalable crypto-native form of money to enable a truly decentralized financial system.

Crypto can no longer depend on traditional infrastructure for stablecoins

For any functional truly decentralized financial system to work at scale, a stable asset not reliant on legacy banking infrastructure is required for both transactional money, as well providing the core collateral for funding. Without a decentralized and stable reserve asset, both centralized & decentralized order books are inherently fragile.
Centralized Exchanges are in desperate need of a reliable and transparent stable asset for their order books, and DeFi faces ongoing existential risk by relying on USDC or RWAs with a centralized kill-switch. Reducing the reliance on the traditional banking system for the role stablecoin infrastructure plays in the space is, in our view, the single most important issue facing crypto today.

8 billion people have no access to a dollar denominated savings instrument

Whilst US citizens have access to their own $30 trillion treasury market, individuals in the rest of the world do not have permissionless access or an ability to generate a yield on a dollar denominated savings instrument.
User demand for existing stablecoins is already provable and enormous at $130 billion+ despite their “return-free risk” profile. We view a substantially equivalent product that provides a permissionless savings return as the largest market opportunity that crypto can provide for individuals all over the world - larger than either a volatile store of value or stablecoins as they currently exist.
We fundamentally believe the most important financial instrument in the real world - a dollar denominated savings instrument - is a basic product everyone should have the ability to access without permission.
Last modified 1mo ago