Ethena Labs is shifting its strategy to reduce reliance on Bitcoin price volatility. The protocol, which issues the synthetic dollar USDe, is moving toward tokenized real-world assets and diversified yield sources to stabilize revenue during market downturns.
The supply of USDe peaked at over $14 billion in October 2025 but fell to approximately $4 billion by late August 2026. To mitigate this 70% contraction, the company reallocated $200 million into tokenized AAA-rated collateralized loan obligations via the Janus Henderson Anemoy fund.
On September 1, 2026, the company launched the beta version of Ethena Pay on the Avalanche network. This service enables USDe holders to use Visa cards for payments, offering yields of up to 6% and rewards in ENA governance tokens.
Ethena recently completed a SOC 2 Type II audit to improve operational transparency. Additionally, the protocol has an approved proposal to direct 95% of net revenue toward ENA token buybacks, which will activate once the USDe supply reaches the $7.5 billion threshold.
