- The proposal by Ethena and Securitize can be evaluated for suitability by a panel.
- If accepted the proposal will improve liquidity and stability throughout the Sky ecosystem.
- USDtb, backed by BlackRock’s BUIDL, gives a steady, RWA-based threat profile.
Ethena Labs and tokenization platform Securitize have submitted a joint proposal to function Ethena’s new stablecoin, USDtb, in Spark’s $1 billion Tokenization Grand Prix.
The $1B Tokenization Grand Prix competitors goals to onboard real-world belongings (RWAs) into DeFi by providing liquidity to chose contributors, additional increasing the scope of tokenized belongings in decentralized ecosystems.
The proposal submitted by Ethena and Securitize
On the coronary heart of Ethena’s proposal is a novel swap facility between USDtb and its artificial stablecoin, USDe.
This innovation would enable contributors within the Sky ecosystem—previously MakerDAO—to dynamically handle liquidity and threat primarily based on prevailing market situations and rate of interest traits. The flexibility to reallocate between these stablecoins is designed to reinforce monetary flexibility and stability throughout the ecosystem.
Ethena’s contribution to the Sky ecosystem is critical, producing practically $120 million in annual income. The combination of USDtb might additional bolster USDe’s efficiency, significantly throughout difficult funding situations, by dynamically adjusting its backing composition.
USDtb, scheduled to launch subsequent week, is backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), a tokenized US Treasury fund on the Ethereum blockchain. With over $533 million in tokenized belongings underneath administration, BUIDL supplies a strong basis for USDtb, providing another threat profile in comparison with USDe.
Whereas USDe employs spinoff hedging methods and is topic to cryptocurrency market fluctuations, USDtb’s backing with conventional monetary devices gives a extra conservative possibility.
The proposal can be evaluated by a panel that features Phoenix Labs and Steakhouse Monetary, utilizing standards resembling liquidity, pricing competitiveness, and alignment with Spark’s strategic goals. Sky tokenholders will finally determine on the ultimate choice by way of a governance vote.
