Dragonfly, led by Arthur Hayes, invests $6M in a new stablecoin project called Ethena

The Portugal-based startup aims to introduce a bond token on the stablecoin platform during the third quarter of 2023.

Ethena, a dynamic Portugal-based startup, is making remarkable strides in the world of digital finance. Having recently secured an impressive $6 million in seed funding through a round led by the esteemed crypto-focused venture capital firm, Dragonfly, the company is confidently moving towards the launch of its groundbreaking products in the third quarter.

The startup’s vision centers around two innovative offerings, both of which promise to revolutionize the digital currency and savings landscape. The first is an internet savings bond, bolstered by cutting-edge technology and secured by derivatives on the Ethereum blockchain. This forward-thinking approach ensures a fully collateralized stablecoin, providing on-chain custody and settlement. The stablecoin maintains its value, pegged to the US dollar, by leveraging user-provided collateral to hedge price exposure through perpetual swaps against Ethereum. This ingenious setup strives to achieve a perfect balance, mitigating any potential losses or gains, thus ensuring the stablecoin remains consistently valued at $1.

The second product is no less impressive – a digitally-native savings bond, cleverly built on top of the stablecoin. Functioning similarly to a US Treasury bond, but without any ties to a government or centralized banking institution, this bond token adds an exciting dimension to Ethena’s offerings.

The funding round garnered support from various influential backers, including BitMEX founder Arthur Hayes and his family office, Maelstrom, as well as several prominent crypto derivatives exchanges like Deribit, Bybit, OKX, Gemini, and Huobi, among others. Such a show of confidence from these industry leaders underscores the immense potential of Ethena’s projects.

Dragonfly general partner Tom Schmidt, in a press release, expressed unwavering confidence in Ethena’s ventures, proclaiming their stablecoin as the “holy grail” – a truly stable, decentralized, and capital-efficient coin. Indeed, stablecoins have witnessed tremendous popularity over the past years for providing access to USD-denominated savings and remittances across the globe. However, Ethena’s groundbreaking design effectively addresses the long-standing issues of stability, decentralization, and capital efficiency, setting the stage for a transformative impact on a diverse user base.

In partnership with Ethena, Dragonfly and other influential backers eagerly anticipate the realization of this visionary project and the potential it holds to reshape the landscape of stablecoins and digital finance as a whole.


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