Providing a crypto-native synthetic dollar and the first decentralized "internet bond" is not only the largest challenge in the space but the largest opportunity
We view stablecoins and other relatively stable, fully-backed assets intended to approximate the dollar as one of three $1 trillion+ opportunities in this space, with an immediate ~$5bn+ addressable market by embedding USDe into exchanges and capturing market share within DeFi as a reserve asset.
With staked Ethereum expected to grow from ~$40bn to >$60bn over the next 12 months (>30% of ETH market cap) alongside ~$6bn of current ETH derivative notional open interest, there is already sufficient scale for USDe to grow into the billions.
Ethena is agnostic to all forms of liquid staking providers, off-exchange settlement providers, and sources of liquidity. The protocol is not sensitive to the competitive dynamics between providers and will benefit from the growth and innovation of the total liquid staking and derivatives ecosystems.
User demand for existing stablecoins is already provable and enormous at $130 billion+ despite their “return-free risk” profile. We view an equivalent product that enables a permissionless savings return to ecosystem participants as the largest market opportunity that crypto can provide for individuals all over the world - even larger than either a volatile store of value or stablecoins as they currently exist.
As a globally accessible and uncensorable instrument, at $5bn USDe outstanding, USDe would account for less than <2bps of the US Treasury market and <0.5bps of global fixed income instruments.