Ethena Labs Introduces Shard Reductions After USDe Stablecoin Supply Exceeds $900M

Decentralized finance platform Ethena Labs In a recent update, the team at Ethena, the firm behind the USDe stablecoin, shared that they have instituted shard reductions after their stablecoin supply exceeded the $900 million mark.    

The modifications include adjusting the shard multiplier for Curve liquidity provider positions, which will decrease from 20x to 15x. Additionally, the multiplier for USDe held outside of approved pools has been slashed from 5x to just 2x. These changes will result in an estimated daily reduction of approximately 1 billion shards, with that translating to about 12% fewer shards each day.

As all shard pools are reaching their maximum limits, integrations for upcoming shards will soon include Layer 2 solutions, cross-chain options, money markets, and leverage protocols.

Ethena Labs points out that users can now obtain USDe on various Layer 2 platforms, like Injective, allowing them to earn shards. They will receive a generous reward of 7x shards per day for USDe held, and 1x for held sUSDe. With the live Injective integration, users can now access the USDe-USDT vault to convert to USDe or LP and accumulate shards. Additionally, upcoming integrations for Manta and Mantle this week will enable users to earn shards similarly by converting to USDe on these Layer 2 platforms. Also, Manta users will have the option to lock their USDe with a 7-day cooldown and earn 10x shards daily on locked amounts.

Additionally, users will be able to use USDe as collateral in protocols such as Gearbox and Ajna, allowing them to earn 7x shards once these protocols are operational later this week. Alternatively, they can use sUSDe to earn 3x shards as a collateral asset.  Morpho The ongoing shard campaign is set to last for three months, or until the USDe supply hits the $1 billion mark. Regardless of whether or not this target is met, the campaign will officially conclude on April 1st.

Ethena Labs Pushing Forward with the Development of the USDe Stablecoin 

Ethena Labs is dedicated to enhancing the USDe stablecoin, which is built on the Ethereum platform and backed by derivatives. Their approach to maintaining price stability involves a strategy termed 'delta-neutral' hedging across both centralized and decentralized platforms, relying on a combination of a long-position in staked Ethereum (ETH) and a short ETH position.

Following an endorsement from Binance Labs during its Season 6 incubation initiative earlier this year, Ethena Labs succeeded in securing $14 million in a seed funding extension led by DragonFly, Bybit, OKX, Deribit, and Gemini, among various investors. The funds are earmarked for expanding their team, including hiring quantitative engineers and business development professionals in the Asian market.

Since its launch, the USDe stablecoin has drawn significant investments and experienced a considerable increase in popularity, leading Ethena Labs to open up several additional deposit pools to accommodate the overwhelming demand, as the previous ones reached their limits. The total value locked (TVL) has consistently climbed, now standing at $922.5 million, with over $580 million added in just the past month, coinciding with the public release of the platform.  raised With these recent changes, the USDe stablecoin is evolving to meet the escalating demand, demonstrating its adaptability and forward momentum.

, please remember that the details provided on this page are not meant to serve as legal, tax, investment, financial, or any other type of advice. It's crucial only to invest what you're willing to lose and seek independent financial counsel if you're unsure. For more comprehensive information, we recommend reviewing the terms and conditions alongside the help and support resources offered by the issuer or advertiser. MetaversePost strives for accurate, unbiased journalism, but keep in mind that market conditions may shift without notice. introduce Alisa, an insightful journalist at Cryptocurrencylistings, dives deep into the worlds of cryptocurrency, zero-knowledge proofs, investments, and the vast universe of Web3. With a knack for identifying emerging trends and technologies, she provides extensive coverage to keep readers informed and engaged in the fast-paced field of digital finance.

Blum Commemorates Its One-Year Milestone with Awards for ‘Best GameFi App’ and ‘Best Trading App’ at Blockchain Forum 2025.