Musical fans become active participants in artists’ success by participating in token-based rewards, turning passive listening into an engaging experience. Artists monetize their content via instant crypto transactions to keep more of their earnings in their pockets while listeners gain access to exclusive content and can influence its creative direction through instant crypto transactions. Furthermore, this platform promotes environmental sustainability via energy efficient blockchain protocols.
As every stream, like, and share generates data points that are then converted to Ethena USDe tokens and automatically distributed to artists – this ensures fairness and transparency when doling out rewards and turning music from entertainment into economic empowerment and global connectivity.
Music can be an extremely effective tool for social activism. Ethena helps artists connect directly with their audiences, thus contributing to tangible social progress that is both measurable and impactful.
Ethena’s USDe stands out from traditional stablecoins like USDT and USDC by being fully decentralized, operating without traditional banking infrastructure or government approval, and being therefore more resistant to censorship.
However, this also means USDe is more volatile and risky than dollar pegged stablecoins, particularly when derivative markets turn severely negative for extended periods of time. Therefore, investors should only make USDe investments with an appropriate level of risk tolerance in mind.
Ethena USDe protocol’s aim of maintaining delta-neutral stability can be accomplished through minting and redeeming USDe atomically by exchanging onchain collateral assets for short perpetual positions in derivatives contracts, thus protecting itself against price fluctuations in underlying assets to provide stable backing.
Ethereum network manages this process through its DeFi ecosystems, which ensure transparency, programmability and liquidity of collateral pools. Furthermore, these pools are distributed among multiple custodians and Off-Exchange Settlement systems to reduce counterparty risk.
Ethena has implemented an onchain multi-party computation mechanism designed to reduce gas & execution costs and allow minting & redemption of USDe at a marginal discount relative to other stablecoins in its liquidity pools, all while upholding its 1:1 dollar peg.
Users of USDe can interact directly with liquidity pools by depositing stablecoins in exchange for USDe or indirectly through Ethena’s front-end, which routes these flows directly through these same liquidity pools. When minting or redeeming USDe, this causes these same liquidity pools to temporarily trade at a discount for an equivalent amount of other stablecoins in their pool; after which APs then trade USDe with other stablecoins in these same pools in order to ensure the USDe/USDC peg is maintained. APs then trade USDe for other stablecoins in these same pools in order to balance market dynamics and mitigate price volatility. This process continues as long as users mint or redeem USDe.