Ethena Labs Proposes Adding SOL as USDe Backing Asset to Boost Revenue and Scalability

Daily Top Performer — Ethereum (ETH)

The SPX index was up by 0.77%, with 9 of its 11 sectors gained, led by technology, utilities, and real estate, while the energy sector declined due to weaker oil prices. Investors are now focused on upcoming earnings reports from major companies like Goldman Sachs and Johnson & Johnson, along with remarks from key Federal Reserve officials. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 5.68%, with Bitcoin and Ether rising by 5.12% and 6.67%, respectively in the past 24 hours.

Today's top performer is ETH, which surged 6.9% following Vitalik Buterin's proposal to lower staking requirements and speed up transactions on Ethereum.

Ethereum (ETH), launched on July 30, 2015, is a decentralized blockchain platform supporting its native cryptocurrency, Ether (ETH), and enabling smart contracts and dApps. It powers ecosystems in DeFi, gaming, and NFTs, using proof-of-stake for security and transaction validation. While offering significant potential, it also carries risks like market volatility and regulatory uncertainty, warranting cautious investment. Vitalik Buterin proposed changes to improve Ethereum's speed and accessibility. Key suggestions include lowering the solo staking requirement from 32 ETH to 1 ETH to encourage more participation and address centralization concerns. He also proposed "single-slot finality" to reduce transaction finalization time from 15 minutes to 12 seconds, aligning Ethereum with faster blockchains. These improvements aim to enhance network performance, with further upgrades, like Pectra, expected early next year.

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Talk of the Town

Ethena Labs proposes adding SOL as a backing asset for USDe, leveraging the same hedging mechanics used with BTC and ETH. The gradual integration, guided by the Risk Committee, considers SOL's shorter trading history and lower liquidity. With SOL’s favorable 2024 funding rates and $2 billion in open interest, the move aims to boost protocol revenue and support USDe’s scaling. The proposal also suggests incorporating liquid staked SOL assets, such as BNSOL and bbSOL, similar to how ETH LSTs are used. The Risk Committee has 7 days to approve the proposal unanimously.

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Bitcoin Spot ETF Flows

Yesterday, In the latest BTC Spot ETF data, the flow for GBTC was $37.8 million, while non-GBTC funds accounted for $438.6 million, bringing the total flow to $476.4 million.

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Airdrop to Watch

The Hyper Foundation has been created to foster the growth of the Hyperliquid blockchain and its decentralized exchange, which offers deep on-chain liquidity for various assets. With the launch of the HyperEVM, applications on Hyperliquid will benefit from this liquidity and additional financial features. The next phase includes the introduction of the native token, HYPE, crucial for the HyperBFT proof-of-stake consensus and future developments. Eligible users can participate in the Genesis Event and receive HYPE and a commemorative Hypurr NFT by accepting the terms on the website before November 11, 2024. More details about HYPE and the Genesis Event will be announced soon.