Ethena Labs, a decentralized application (DApp), has achieved the highest earnings among DApps by generating over $6.8 million in daily cumulative revenue in the past week, according to a post by Seraphim Czecker, head of growth at Ethena Labs, on March 8. The only blockchains that surpassed Ethena’s revenue were Tron, with $38.6 million, and Ethereum, with $182.5 million in daily cumulative revenue over the last seven days.
Ethena currently offers a 67.2% yield on its USDe synthetic dollar to over 350,000 users, as stated on its homepage. The market cap of Ethena’s USDe has seen a significant increase, rising by 43% in the past week and 409% in the past month to reach $840 million, according to data from DefiLlama.
On February 19, Ethena Labs launched its USDe synthetic dollar on the public mainnet. This launch raised concerns among investors since the Ethereum-based synthetic dollar offered a 27.6% annual percentage yield (APY), which was considerably higher than the 20% yield offered by Anchor Protocol on the TerraUSD (UST) algorithmic stablecoin before its collapse in May 2022.
Guy Young, the founder of Ethena Labs, explained in an exclusive interview with Cointelegraph on February 22 that the initial concerns surrounding USDe’s yield are indicative of a maturing industry recovering from the collapse of the Terra ecosystem. Unlike the failed Anchor protocol, USDe’s yield is publicly verifiable as it is generated through staking returns and shorting Ether perpetual future contracts.
Ethena Labs secured $14 million in funding for its synthetic dollar, as disclosed by the team on February 16. The funding round was supported by venture capital firm Dragonfly. In a previous round of investment in 2023, the startup raised $6 million with the participation of prominent investors such as Binance Labs, Gemini, Bybit, Mirana Ventures, OKX Ventures, and Deribit.
Related: According to a report, Pantera has launched a fundraise to acquire $250 million worth of SOL from FTX estate.