🪶 DeFi Heavy-Weights Clash Over Ethena's USDe

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Ethena’s yield-bearing USDe stablecoin continues to simultaneously make waves and garner controversy within the crypto community. Prominent figures are debating the potential risks posed by its novel strategy for yield generation, with some fear holders could be hurt in a bearish downturn. Ethena also added support for Bitcoin as a collateral asset backing USDe.

In other news, Bitcoin short positions are piling up, PayPal’s cross-chain remittance platform now supports PYUSD, Frax stakers will earn $400,000 from this week after fee switch activation, BONSAI sets sights on Farcaster adoption, and Web3Firewall raised $2.5 million.

Plus, BlackRock expanded the Authorized Participants for its Bitcoin ETF, including the likes of Goldman Sachs, Citadel Securities, and UBS Securities.

✍️ In today’s newsletter:

• Onlookers debate USDe risks
• Ethena onboards BTC as collateral
• Bitcoin shorts pile up
• Xoom supports PYUSD remittances
• Frax activates fee switch
• BONSAI targets Farcaster adoption
• Web3Firewall raises $2.5M
• IBIT onboards Authorized Participants

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🎬 WATCH

Check out our guide to earning memecoins using Farcaster and Drakula. Also, watch our podcast with TN Lee, the founder of Pendle, to learn about the innovative yield tokenization protocol.

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🤔 Crypto Heavyweights Torn Over Ethena’s New Stablecoin

Ethena’s USDe stablecoin is igniting concern from prominent actors in crypto as surging adoption, including from DeFi protocols, pushes its market cap past $2 billion. With the token promising double-digit yields from Ethereum staking rewards and short funding rates, onlookers fear holders could take a hit in the event of a sustained bearish downturn.

₿ Ethena Adds Bitcoin As Collateral Asset For USDe

Ethena is seeking to bolster USDe’s growth despite ongoing scrutiny, with the project adding Bitcoin as a collateral asset. The move paves the way for USDe providing yield from Bitcoin funding rates, potentially increasing both the token’s rewards and risk profile.

🩳 Crypto Markets Bounce As Hedge Funds Pile On Bitcoin Shorts

The crypto markets are trading sideways despite whales opening large short positions. However, the influx of short positions may result from sophisticated speculators entering basis trading strategies designed to profit from high funding rates for shorts.

🪙 “Stablecoin Wars” Heat Up As PayPal Enables PYUSD For Cross-Border Transfers

PayPal’s remittance subsidiary Xoom, now supports fee-free USD to PYUSD conversion across 160 countries. The news comes amid increasing competition within the stablecoin space, with Ripple announcing plans to launch a new stable token.

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🎚️ Frax Stakers On Track To Earn $20.8M Annually After Fee Switch Activation

Frax is set to distribute nearly $400,000 in fee revenue to FXS stakers this week in addition to buying back $400,000 worth of FXS. The moves follow Frax’s community passing a proposal to activate a revenue-sharing “fee switch” last weekend.

🪴 BONSAI Memecoin Aims to Become De Facto Currency On Lens After $1M Angel Round

MadFi, the team behind the BONSAI memecoin, raised $1 million in an angel round. The team is hoping that its token will become a leading currency on Lens, a leading decentralized social protocol, following in the footsteps of the recently surging DEGEN memecoin.

🧱 AI-Powered Web3Firewall Raises $2.5 Million Round Led By Nomura's Laser Digital

Web3Firewall, a crypto security service leveraging artificial intelligence and machine learning, raised $2.5 million from Laser Digital, a subsidiary of the banking giant, Nomura. The project aims to quickly identify malicious transactions and other threats by harnessing AI.

👨‍💼 BlackRock Adds Five New Firms To ETF, Including Goldman Sachs, Citigroup

BlackRock has added five new Authorized Participants for its spot Bitcoin ETF, IBIT spanning leading tradfi institutions. Goldman Sachs, Citadel Securities, UBS Securities, Citigroup Global Makers, and ABN AMRO are now able to create and offer IBIT shares to investors.

🌍 ELSEWHERE

• EU Watchdog Says Reordering Blockchain Transactions Might Be Market Abuse. Industry Says It's Not (CoinDesk)
• Uniswap hits a historic $2 trillion in trading volume (The Block)
• The First Australian Spot Bitcoin ETF Could Launch Mid-Year (Bitcoin Magazine)
• FTX Estate Raises Up to $1.9 Billion in Sale of Solana at Deep Discount: Report (Unchained)

🔥 TRENDING

• The Bitcoin Halving Is 19 Days Away — How Did BTC Perform In Past Cycles?
• Crypto Markets Bounce As Hedge Funds Pile On Bitcoin Shorts
• Ethena Labs ENA Launches at $1 Billion Market Cap Post Airdrop As “Sats Campaign” Kicks Off
• Wormhole's W Token Climbs to $2.5 Billion Market Cap Post Airdrop
• SEC Asks For Public Comments On Ethereum ETFs But Experts Say It’s Not Bullish
• Vitalik Buterin and Arthur Hayes Weigh In On Memecoin Frenzy
• Chile Stands to Lead Latin America For Crypto Regulation, Even as it Lags in Adoption
• Pendle TVL Approaches $4 Billion On Airdrop Farming Demand
• Crypto Heavyweights Torn Over Ethena’s New Stablecoin
• Ethena Adds Bitcoin As Collateral Asset For USDe