Ethena Labs’ synthetic USDe, a digital asset that is designed to mimic the value of the US Dollar, has just exceeded the market capitalization of $3 billion since its launch in February of this year and has quickly become the fourth largest stablecoin on the market, surpassing First Digital’s FDUSD.
Synthetic USDe has been gaining a lot of traction this year as it offers traders a way to hedge against market volatility and manage risk more effectively when trading on margin.
By using synthetic USDe as collateral, traders can potentially reduce their exposure to the volatility of other cryptocurrencies while still being able to leverage their positions in coin-margined contracts.
It comes as no surprise that just a day after its’ surpassing of FDUSD, major exchange Bitget announced the integration of Ethena Labs’ synthetic USDe as a margin option for coin-margined contracts.
According to Bitget, USDe is the seventh coin that joins the platform’s margin options alongside BTC, ETH, USDC, XRP, BGB, and STETH. This integration is set to enhance capital efficiency for traders, optimizing asset distribution for improved financial oversight.
By transferring USDe funds to the coin-margined contract account, Bitget users can navigate to the contract trading interface and select coin-margined contracts. Upon selecting the currency pair, such as BTCUSD, and selecting USDe as the margin, users can adjust leverage according to risk tolerance and trading strategy.
Users can place buy/sell and other types of orders, as well as, monitor positions and market conditions using stop-loss and take-profit orders to manage risks and secure profits. When the trade reaches the preferred profit or loss range, users can close the position at the market price or a predetermined price limit.
Bitget’s CEO Gracy Chen commented on the integration:
“At Bitget, we’re constantly delivering world-class trading resources to our users be it market insights, DeFi access or any other relevant trading-enhancing mechanism, we have it all! Just one year ago, USDe didn’t exist, yet it now holds approximately 3% of the supply in Stablecoins. This impressive growth demonstrates the potential of well-designed mechanisms, and we are excited to continue supporting and partnering with innovative crypto-native projects.”