The sUSDe is an innovative product from the Ethena platform, described as the world's first native crypto "Internet Bond". The product is based on the synthetic stablecoin USDe, which is itself fully backed by crypto assets via a delta-neutral strategy. By staking USDe, users receive sUSDe, a version that automatically accumulates rewards and whose value increases over time thanks to the returns generated by the underlying assets and positions in the derivatives markets.
What is a "delta-neutral strategy" A delta-neutral strategy is designed to eliminate the risks associated with price fluctuations in the underlying assets while maintaining a stable return.
Simplified diagram of a delta-neutral strategy. As you can see, if the ETH price rises, the profits are cancelled out by the fall in value of the shorts. And vice versa. The delta therefore remains at $0 all the time.
In the case of Ethena's USDe, this strategy is based on a precise balance between "long" positions in assets such as ETH and "short" positions in perpetual contracts (derivatives).
For example, when a user provides 1 ETH to create USDe, the protocol immediately takes an equivalent short position in an ETH/USD perpetual contract. This neutralises the impact of changes in the ETH price: if the ETH falls, losses on the asset held are offset by gains on the short position, and vice versa. This hedging keeps the dollar value of USDe stable, even in the event of sharp market fluctuations.
Where does the return on sUSDe come from? The return on sUSDe is generated from three sources:
Rewards from staked assets : Underlying assets such as staked ETH generate returns on the consensus and execution layers. These ETH are in fact Liquid Staking Tokens (LST) such as stETH, WBETH, BETH...Spreads and funding rate in hedging strategies : The protocol takes advantage of spreads and funding rates on the perpetual and futures markets used for delta-neutral positions. This structure provides income while minimising the risk associated with fluctuations in underlying asset prices.Fixed returns on stablecoins: Ethena has a pool of USDC and USDS stablecoins deposited on Coinbase and Sky , reaping fixed interest. These mechanisms ensure a stable, fully on-chain stream of returns.
How do I access the sUSDe? Here are the steps to get sUSDe:
Acquire USDe : You can buy USDe on the official Ethena platform , via decentralised liquidity pools like Uniswap or using the Infinex platform .Staking USDe : On the Ethena application, users can exchange their USDe for sUSDe via a simple interface. As soon as the staking is confirmed, the sUSDe starts to accumulate returns automatically. Be aware that the simplest method at the moment is still to use Infinex . This very easy-to-use tool provides very easy access to DeFi and, in our case, sUSDe returns, without having to incur Ethereum fees and carry out the necessary KYC on Ethena.
The sUSDe, unlike the sDAI or sUSDS, works by increasing the number of sUSDe tokens held in the staker's portfolio, rather than growing the value of each token.
Advantages and disadvantages of sUSDe Advantages: Increased and stable passive return : sUSDe generates income from a number of sources, including funding fees on derivatives and rewards from staked assets, providing a competitive and diversified return.Neutrality to market fluctuations : Thanks to the delta-neutral strategy, users enjoy returns without exposure to the volatility of underlying assets such as ETH, improving predictability.Income diversification : Unlike other similar products, sUSDe relies on several value-generating mechanisms, reducing the risk of dependence on a single source of return.Disadvantages: Complexity of adoption : Understanding mechanisms, such as the delta-neutral strategy and derivatives, can put off new users, even if this is simplified by the protocol.Volatility of returns : Although returns are diversified, they remain sensitive to derivative market conditions (e.g. changes in funding charges) and the performance of staked assets.Associated risks Funding risk : A failure in spreads or rewards could affect returns.Collateral risk : The value of sUSDe relies on the stability of the underlying assets (ETH, BTC).Counterparty risk : Although assets are delegated to off-exchange custody solutions, there is a residual risk of default by these custodians.Relative centralisation risk : The use of exchanges for derivative positions adds risk in the event of the default of one of these firms. Fortunately, several exchanges are used to limit this risk. You can find the list on the official dashboard .Technology risk : As with any DeFi protocol, smart contracts remain subject to potential vulnerabilities, even if they are audited.Conclusion Ethena's sUSDe represents a major breakthrough in the world of decentralised finance, combining technical innovation and accessibility. Thanks to its delta-neutral design and its mechanism for generating returns from multiple sources, it manages to offer robust passive income while minimising the risks associated with market volatility. What's more, its fully on-chain infrastructure and compatibility with CeFi and DeFi solutions make it an ideal option for those looking for a stable and scalable alternative to traditional stablecoins. Whether you are a novice or seasoned investor, sUSDe is positioned as a pillar in the evolution towards a crypto-native economy, combining security, transparency and performance in a market that is constantly transforming.
>> Read also our fundamental analysis of the Ethena project and its ENA token
