By
Chimamanda U. Martha
June 13th, 2024
In addition to the forced vesting structure, Ethena Labs has rolled out staking options for users looking to earn passive income within the ecosystem.
Ethena Labs, a decentralized protocol focused on the yield-bearing USDe stablecoin, has announced significant changes to the tokenomics of its ENA token, requiring users to lock part of their holdings for a certain period of time.
In a recent announcement, the protocol stated it had revamped its tokenomics to include a forced vesting mechanism. This mechanism is designed to enable users participating in different airdrop initiatives such as the Shard Campaign to commit at least 50% of their claimable tokens on the platform.
The move aims to enhance the stability and long-term value of the ENA token within the ecosystem by ensuring that the tokens are gradually released over a specified period to discourage short-term speculation.
Ethena to Redistribute Unvested Tokens
Ethena Labs stated that users can lock their tokens through various methods such as Ethena locking, PT-ENA on Pendle, or Symbiotic Restaking. The protocol has warned that non-compliance will result in the redistribution of unvested assets to users who have properly staked their ENA through the specified methods. The team behind the development of Ethena Labs has also assured that any forfeited tokens will not be kept by the foundation, its team, or investors, guaranteeing a fair and transparent reallocation process.
Furthermore, Ethena Labs will provide users with detailed guidance on how to navigate and comply with these new vesting rules. According to the announcement, the instructions will be available on June 23, coinciding with the regular weekly schedule when users can claim their vested ENA tokens.
New Staking Options for ENA Holders
In addition to the forced vesting structure, Ethena Labs has rolled out staking options for users looking to earn passive income within the ecosystem.
The protocol has introduced multiple staking options for ENA token holders, such as locking the assets within the ecosystem to earn rewards over time and PT-ENA Pools on Pendle Finance for those seeking a predictable return. According to the announcement, users can participate in PT-ENA pools on Pendle Finance, which offers a fixed annual percentage yield (APY).
Additionally, users can engage in generalized restaking pools, which play a crucial role in securing cross-chain transfers of USDe, Ethena’s stablecoin.
These newly introduced staking capabilities are part of Ethena Labs’ broader strategy to integrate ENA into its expanding financial ecosystem, including the forthcoming Ethena Chain. The move ensures that ENA tokens are not only a medium of exchange but also a tool for securing and validating transactions within the network.
Upcoming Developments
Ethena Labs highlighted that restaking ENA tokens is significant as it provides the necessary security for cross-chain transfers, verified through LayerZero’s DVN network. According to the protocol, this mechanism enhances the robustness of transactions involving USDe, ensuring they are both secure and efficient.
In addition to these new developments, Ethena Labs has unveiled its plans for ENA in the future. The protocol announced that both ENA and sUSDe will be the first assets available for deposit in Symbiotic’s next epoch.
The protocol mentioned that the initial liquid staking tokens (LST) caps for these assets have already been filled, indicating strong community interest and engagement.