Ethena's 'synthetic dollar' USDe crosses $3 billion supply just four months after launch

Ethena Labs USDe stablecoin, also known as a 'synthetic dollar' which maintains its peg through arbitrage mechanics and a yield-returning cash-and-carry trade, has reached a supply of $3 billion tokens just four months following its public launch in February. 

The stablecoin's supply has grown by $1 billion since April 5, when it last crossed the $2 billion threshold . Now, it's on track to challenge DAI as the largest algorithmic or decentralized stablecoin, though it'll have to add another $2 billion in supply to get there, according to data from The Block. 

In terms of overall stablecoin supply, USDe is in fourth place with a 3.3% share of the overall stablecoin market, far less than market leader Tether's dominant 57% position.

While USDe's rapid rise has reminded some of Terraform Labs's UST stablecoin, the mechanics of each token differ, with USDe's yield coming from a cash-and-carry trade and staking revenue which is then shared with holders. The stablecoin was recently integrated with Bybit , which provides spot trading pairs with Ethereum and Bitcoin. 

USDe also recently began airdropping its governance token , ENA, in April; the token has since hit a market capitalization of $1.3 billion, according to The Block's price page , having fallen from its all-time high price of $1.52 to about $0.91 as of Saturday night.