Ethena increases staking rewards by 50%

Team Ethena Labs has announced an increase in rewards for users who have locked a large amount of ENA tokens in staking.

Against the background of the news about the increase in rewards, the rate of the native token of the Ethena ecosystem – ENA – immediately jumped by 14%. Additionally, the asset also set a new all-time high (ATH).

Ethena Labs increases user rewards

According to message project team, the minimum ENA staking period is now seven days. The initial blocking limit is set at $200 million. They plan to increase it over time.

Users who have locked up more than 50% of the Ethena token supply relative to the synthetic stablecoin USDe will be able to qualify for a 50% increase in staking rewards. It is paid in Sats points, which are converted into coins during the upcoming airdrop.

In order to receive a reward, the user must deposit ENA in the amount of at least $5 thousand. It will be possible to track all bonuses in the wallet, but after updating its interface, which the developers will roll out today, April 9.

The initiative's main goal is to encourage user participation and strengthen the protocol's ecosystem, Ethena said in an announcement.

What's happening to the ENA rate?

According to CoinMarketCap, over the past 24 hours, the price of ENA has increased by more than 14%. About four hours ago, the coin updated its ATH, reaching $1.40. At the time of writing, the indicator has rolled back slightly and is now $1.27.

Trading volume over the past 24 hours, meanwhile, jumped by 89.8% to $1.5 billion. The asset capitalization rose to $1.8 billion.

Previously, the Ethena team added Bitcoin (BTC) to back its synthetic stablecoin USDe, launched in February of this year. Thus, the developers want to increase the issue of the “stable” coin, which has stopped at $2 billion.

USDe is very popular because it offers a fairly high annual return. However, one of the most influential thought leaders in the field of decentralized finance (DeFi), Andre Cronje, believes that the stablecoin could face a collapse similar to the TerraUSD scenario.

Source: Cryptocurrency

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