A portion of protocol fees is set to be redirected to ENA holders.
The Ethena Foundation, a nonprofit that contributes to Ethena governance, confirmed today that the activation of the synthetic dollar protocol’s fee switch is set to be proposed to governance.
The fee switch, first proposed by Wintermute in November, would redirect a portion of protocol fees to ENA holders now that the Risk Committees’s success metrics have been fulfilled.
These metrics, outlined in November, called for a circulating USDe supply of greater than $6 billion, cumulative protocol revenue of greater than $250 million, and USDe’s integration on four of the top five centralized exchanges ranked by derivatives volume.
USDe boasts a market capitalization of almost $14 billion today, up more than 150% over the last two months, making it the third largest stablecoin behind USDC and USDT.
Ethena’s ENA token is also in an uptrend. ENA is up 226% over the last year, and is changing hands at $0.70.
However, while the ENA token is trading well below its all-time high of $1.52, its market capitalization reached a new all-time high of $5.6 billion last week. The difference between market capitalization and price performance is due to token unlocks.