How to Use Ethena
Ethena is a synthetic dollar protocol offering USDe, a yield-bearing stablecoin backed by delta-neutral positions. Earn attractive yields from funding rates.
What is USDe?
USDe is Ethena's synthetic dollar, backed by:
- Staked ETH (stETH, etc.)
- Short perpetual futures positions
- The combination creates delta-neutral exposure
- ETH staking rewards
- Perpetual funding rates (usually positive)
- Combined yields of 15-30%+ APY
USDe vs Traditional Stablecoins
| Feature | USDe | USDC |
|---|---|---|
| . . . . - | . . . | . . . |
| Backing | Crypto + derivatives | USD reserves |
| Yield | 15-30% (sUSDe) | 0% |
| Risk | Higher (funding rates) | Lower |
| Decentralization | High | Centralized |
Important Risks
- Funding rates can turn negative
- Custodian risk for collateral
- Smart contract risk
- Novel mechanism
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Step-by-Step Instructions
1
Go to Ethena
Visit app.ethena.fi and connect your wallet.
Tips
- ✓Ethena is available on Ethereum mainnet
Warnings
- ⚠Only use app.ethena.fi
2
Prepare Stablecoins
Have USDC, USDT, DAI, or other supported assets ready to mint USDe.
Tips
- ✓ETH and stETH can also be used directly
- ✓Check supported assets on the app
3
Mint USDe
Enter the amount of stablecoins to convert to USDe. Review the transaction.
Tips
- ✓Large mints may get better rates
- ✓Gas costs around $10-30 on Ethereum
4
Approve and Confirm
Approve the token spend if first time, then confirm the mint transaction.
Tips
- ✓Wait for confirmation before proceeding
5
Receive USDe
USDe will appear in your wallet. This is the base synthetic dollar.
Tips
- ✓USDe itself does not earn yield - stake it for sUSDe
- ✓Add token to wallet if not visible
6
Stake for sUSDe
Stake your USDe to receive sUSDe and start earning yield.
Tips
- ✓sUSDe accrues value over time
- ✓No lockup period - unstake anytime