Ethena Adds Equities to Basis Trade, Shutters HIP-3 Market

Ethena is expanding its basis trading operations to include equities and commodities alongside its existing cryptocurrency positions, a move designed to diversify the backing assets for its USDe stablecoin. Simultaneously, the protocol is discontinuing its HIP-3 market on the Hyperliquid exchange. The shift reflects an effort to strengthen USDe's reserve composition by tapping into traditional asset classes rather than relying solely on crypto collateral.

The expansion into equities and commodities could broaden the addressable market for USDe while reducing concentration risk in digital assets. By accessing multiple asset classes through basis trades, Ethena aims to improve the stability and backing of its synthetic dollar product.

• Ethena is adding equities and commodities to its basis trading strategy to diversify USDe's reserve backing beyond crypto assets.
• The HIP-3 market on Hyperliquid is being shut down as part of the strategic restructuring.
• The move targets enhanced reserve diversification and expanded market potential for the stablecoin.