Bybit welcomes Ethena’s USDe, a decentralized stablecoin utilizing delta-hedging staked Ether

Rick Steves

“Our collaboration with Ethena Labs represents our commitment to solving some of the biggest challenges in crypto today, not least, the creation of a decentralized stablecoin. The integration of USDe on Bybit expands our stablecoin offerings, providing our users with an array of uncorrelated solutions accessible from our Unified Trading Account.”

Bybit

Bybit, the world’s third-largest crypto exchange, has announced a partnership with Ethena Labs that introduces Ethena’s USDe stablecoin on Bybit’s platform.

USDe is a decentralized money solution, independent of traditional banking systems. It utilizes delta-hedging staked Ether (ETH) for full collateral backing.

Bybit will handle significant hedging flows for USDe

This collaboration marks a strategic move in digital currency innovation. Bybit will handle significant hedging flows for USDe, reinforcing its role in Ethena’s strategy. The integration offers Bybit users an alternative to centralized stablecoins, diversifying their stablecoin holdings.

Ethena’s approach includes separate custody and execution, aligning with traditional market practices. It uses qualified custodians for asset safety, reflecting Bybit’s commitment to meeting institutional demands. This move positions Ethena as a transformative industry player.

Ben Zhou, co-founder and CEO of Bybit, expressed the company’s dedication to addressing crypto challenges, emphasizing decentralized stablecoin creation. “Our collaboration with Ethena Labs represents our commitment to solving some of the biggest challenges in crypto today, not least, the creation of a decentralized stablecoin. The integration of USDe on Bybit expands our stablecoin offerings, providing our users with an array of uncorrelated solutions accessible from our Unified Trading Account.”

Established in 2018, Bybit ranks as a top-three cryptocurrency exchange by volume, boasting 20 million users. It offers a professional trading platform with a fast matching engine, continuous customer support, and multilingual community assistance. Bybit is partnered with the Oracle Red Bull Racing team, Formula One’s reigning Constructors’ and Drivers’ champions.

Bybit launched Portfolio Margin Mode for institutional users

Bybit Institutional, part of Bybit – the world’s third-largest crypto exchange by volume, has upgraded its Portfolio Margin Mode.

This improvement now includes spot trading capabilities. The upgrade allows traders to incorporate spot positions into their hedging strategies, enhancing risk management in the volatile cryptocurrency market.

Previously, Portfolio Margin Mode grouped USDC and USDT derivatives of the same currency into one risk unit, using stress testing for margin requirements. The new version allows traders to use spot holdings to hedge against derivatives position losses, aiding in navigating market volatility and reducing the impact of price fluctuations.

The key benefits of integrating spot trading into Portfolio Margin Mode include:

Reduced Margin Requirements: By balancing profits and losses between spot and derivatives positions, traders may lower overall margin requirements, increasing capital efficiency.
Seamless Integration: Spot positions are easily integrated into the Portfolio Margin Mode, enabling unified portfolio management on a single platform.

Traders have the option to participate in spot hedging for spot prices, though this feature is not automatically enabled. They must actively choose to opt in. The system then checks if the trader’s maintenance margin rate (MMR) is below 100%, allowing switching only if this condition is met.

Reducing counterparty risk

A few months ago, Bybit integrated with Copper’s ClearLoop network, marking a significant step forward in addressing the needs of institutional investors and reinforcing the principles of good governance, transparency, and accountability.

The crypto exchange took a monumental leap forward by seamlessly merging with Copper’s pioneering ClearLoop network. This essential partnership introduces a new paradigm of off-exchange settlements, thereby ushering in an era of increased capital effectiveness and diminished counterparty risk.

Access to ClearLoop’s trust documentation, which directly tackles exchange counterparty and insolvency risk, allows Bybit’s clients to navigate the trading landscape with heightened security and confidence.

A critical advantage of this integration is the provision for expedited off-chain settlements while trading on Bybit, an indispensable feature during market turbulence when delays in blockchain transaction confirmations can escalate.

Protecting assets under Copper’s Multi-Party Computation custody and the ClearLoop integration showcasing a transparent English Law trust structure provides institutional clients with an additional layer of empowerment.

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