In the wave of DeFi, stablecoins have evolved from purely a hedging tool to a device that can continuously generate value. The Ethena protocol is a typical example; it creates synthetic USD on Ethereum called USDe and cleverly combines delta-neutral hedging strategies to maintain the stability of the coin's value while capturing funding rates and basis gains in the market.
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In the wave of DeFi, stablecoins have evolved from purely a hedging tool to a device that can continuously generate value. The Ethena protocol is a typical example; it creates synthetic USD on Ethereum called USDe and cleverly combines delta-neutral hedging strategies to maintain the stability of the coin's value while capturing funding rates and basis gains in the market.