Ethena ENA Community Proposal for Ethereal DEX Integration

The Ethena ENA community is discussing a new proposal suggesting the integration of a decentralized exchange (DEX) named Ethereal into Ethena-related reserve management. This integration aims to establish Ethereal as the fully on-chain venue for spot and derivative positions backing USDe, the synthetic stablecoin launched in February 2023.

“We request support from the Ethena community for an integration with Ethereal as a venue for executing hedging transactions,” the proposal states, also seeking technical assistance for the integration with Ethena’s hedging engine.

The proposal, authored by Fells0x, a likely Ethereal team member, emphasizes mutual benefits. Ethereal could provide a new demand stream for USDe while ensuring transparency, as USDe backing management would be conducted on-chain. Additionally, the Ethereal team suggested distributing 15% of any potential Ethereal governance tokens to Ethena (ENA) token holders.

Ethereal DEX Details

Ethereal is expected to launch on testnet within Q4 of this year. The DEX aims to handle one million operations per second with a latency of under 20ms. It is designed to match centralized exchange performance while maintaining self-custody and flexibility to support features such as cross-margin, liquidity automation, and portfolio margin.

In response to the proposal, Ethena Labs indicated on X that a voting snapshot will be released “shortly,” although a specific date is not provided.

Recently, Ethena announced plans for a new stablecoin, UStb, in collaboration with Securitize, a real-world asset tokenization platform. This stablecoin will be backed by BlackRock’s tokenized U.S. Treasuries fund BUIDL.

Currently, USDe has approximately 2.5 billion tokens in circulation, according to The Block’s data dashboard. Ethena Labs has not yet responded to requests for additional comments.