In the world of cryptocurrency, the reward mechanism of tokens often attracts the attention of many users. Recently, the Ethena ecosystem launched a lock-in reward program for $ENA tokens, providing users with higher earning opportunities. This article will introduce in detail the locking mechanism of the $ENA token, the reward calculation method, and the dynamics of cooperation with other platforms.
What is the $ENA token?
The $ENA token is the core token in the Ethena ecosystem and is designed to facilitate user participation and long-term holding. By locking $ENA, users can not only receive high rewards, but also continue to participate in governance. This mechanism is designed to attract users with long-term commitment to the Ethena ecosystem and ensure the healthy development of the ecosystem.
Reward mechanism for locking $ENA: Starting from April 8, users can lock $ENA in Ethena for a minimum of 7 days. During the lock-in period, users will earn the maximum number of Sats (the smallest unit of Bitcoin) at a rate of 30x daily. What’s more, if users hold at least 50% of $ENA in their USDe balance, all USDe related rewards will receive a 50% boost.
Example description
Assume that a user has a USDe balance of $10,000, distributed as follows:
$2,000 locked in USDe for 7 days
$2,000 USDe location on Gearbox or Morpho
$2,000 in Curve LP slot locked on Ethena
$2,000 holding sUSDe
$2,000 transferred to qualifying L2 via bridging
In this case, users would need to lock up at least $5,000 in $ENA to receive the reward boost. To help users track the status of their wallets, Ethena will launch a new user interface update on April 9.
Eligibility and lock-in restrictions
Users participating in the $ENA lockup program, mostly Q1 participants, will receive transferable $ENA tokens for locking. To be clear, team and investor allocations (tokens subject to the locking schedule) will not be able to participate in the $ENA lock, only circulating $ENA obtained through the first airdrop or on the open market.
The initial $ENA lock limit is $200M, which will gradually increase in the future, but there will be a 7-day cooling off period for locked $ENA.
Reward options and partnerships for the new season
With the new season, Ethena will also be launching a number of new partnerships to enhance user reward options. These include collaborations with MakerDAO and Morpho.
MakerDAO Cooperation with Morpho: According to news last week, MakerDAO has voted to increase the cap of the Morpho USDe and sUSDe/DAI pools from $100M to $600M, with the ability to further increase to $1B in the future. This increased cap will be rolled out gradually, with Maker adding its first $100M allocation today.
Morpho users will receive corresponding rewards when they deposit collateral and borrow money. Regarding the risks of using leverage, relevant teams are actively monitoring to prevent the DeFi field from accumulating too many risks in a short period of time.
Extensions to the Pendle pool
The original Pendle USDe pool is very popular on ETH L1 and has about $30M of capacity left at the current $400M cap. In response to feedback from the community (mainly that ETH gas fees are burdensome for some users), Ethena will launch new pools on cheaper networks, including:
Mantle Pool: Pool for other low-cost networks: These new pools will each have an initial cap of $100M and have different expiration dates to meet the diverse needs of users.
Summarize
The locked reward mechanism of the $ENA token provides users with an attractive long-term investment opportunity while also encouraging users to actively participate in the governance of the Ethena ecosystem. By partnering with MakerDAO and Pendle, Ethena not only enhances users’ revenue options, but also enhances the vitality of the overall ecosystem.
By locking $ENA, users can not only enjoy higher rewards, but also contribute to the sustainable development of the ecosystem. As the Ethena ecosystem continues to grow, we look forward to seeing more innovations and incentives introduced.