Ethena Expands USDe Backing to Equity Perpetuals Amid $6B Open Interest

Ethena, the protocol behind the USDe synthetic dollar, is making a significant shift in its collateral strategy by expanding its delta-neutral backing to include equity perpetual futures. This move comes as the equity perpetual market quietly amasses over $6 billion in open interest, marking a pivotal development since the protocol's inception.

The core strategy is straightforward: as equity perpetuals now carry high funding rates, Ethena anticipates that this market will soon surpass crypto as the primary yield source for USDe within the next 12 to 24 months. Initially, Ethena's model involved holding spot crypto, shorting the equivalent in perpetual futures, and pocketing the funding rate generated from the basis between spot and futures prices.

With platforms like Hyperliquid and Binance offering perpetual futures on major equities, the extension into equity perps applies the same delta-neutral framework to synthetic versions of stocks and commodities. Following the launch of Hyperliquid’s HIP-3 equity perps framework in October 2025, trading volumes surged by over 5,000%, peaking at over $30 billion in a single quarter during Q1 2026.

The diversification strategy is crucial for USDe holders, especially as the current supply hovers between $4 billion and $4.5 billion, significantly lower than its previous peak of over $12 billion. This decline highlights the risks associated with relying solely on crypto funding rates as a yield source. Ethena's diversification efforts began in April 2026, extending its delta-neutral framework to include both equity and commodity perpetuals, as well as incorporating liquid stable assets and tokenized collateralized loan obligations into its backing mechanisms.

Additionally, on August 19, 2026, Ethena announced a partnership with FalconX for a $1 billion secured warehouse lending facility, further diversifying its yield sources beyond basis trades.