TL;DR
- Ethereal proposes an integration with the Ethena network to expand its ecosystem and improve onchain management.
- A 15% allocation of Ethereal governance tokens is offered to ENA users.
- The exchange aims to match the performance of centralized platforms while maintaining full user custody.
Ethereal, a decentralized spot and perpetual futures exchange, has submitted a proposal to Ethena governance for its integration. This proposal aims for the exchange to become part of Ethena’s hedging engine and liquidity management, creating an onchain environment for the management of spot and derivative positions backing USDe.
In the proposal, the exchange offers a 15% allocation of governance tokens to ENA users. This measure seeks to align both communities and encourage active participation within the ecosystem.
A new proposal was made on Ethena governance a few hours ago
Ethereal Exchange is requesting the community approval to launch a new spot and perpetual exchange built on USDe and integrated into the Ethena hedging engine and liquidity
Their proposal includes a 15% commitment of…
— Ethena Labs (@ethena_labs) September 30, 2024
Ethereal V1, whose testnet is expected in the fourth quarter, was built as an L3 EVM appchain that settles on the Ethena network. This architecture aims to match the performance of centralized exchanges while maintaining full user custody. Additionally, it will support advanced features such as cross-margin, liquidity automation, and wallet margin, all while processing 1 million operations per second with sub-20 millisecond latency.
Ethereal Requests Support for Integration with Ethena
The exchange’s main goal is to collaborate with the Ethena community to promote the growth and adoption of USDe within the DeFi ecosystem. The proposal also mentions the need for technical support to deploy Ethereal on the Ethena network, enabling the implementation of an integration with its hedging engine.
The benefits for the Ethena network include increased demand for USDe, improved decentralization of its onchain backing, and the creation of a precedent for future applications built on USDe. The exchange is positioned as a key piece in the expansion of the Ethena ecosystem, enhancing management and liquidity in decentralized platforms, and laying the foundation for financial innovation within the network.
A vote is expected to be launched soon for the Ethena community to decide whether to approve Ethereal’s integration.