Ethena's USDe has made an impressive leap. It is now the third largest stablecoin in the crypto market. It surpassed DAI and USDS. Surprising, isn't it?

The adoption of USDe is on the rise. Governance advancements are also increasing. It seems that Ethena's famous "fee switch" is getting closer. ENA holders are anxious. They might finally be able to participate in the protocol's revenues.

USD has grown like crazy this month. 42% more in circulation. Its market cap now exceeds $12.4 billion. Only USDT and USDC surpass it in size now.

Ethena has already met two out of three goals for the switch. It surpassed $6 billion in supply and $250 million in revenue. It only needs to integrate with large exchanges. It's within reach.

USDe is different. It does not use bank reserves. It uses a delta-neutral strategy. It covers deposits with short positions. It seeks to cushion price fluctuations. It's a risky move.

This rare configuration has given it a boost. DeFi users love it. They see new yield opportunities. But beware, some experts have doubts. Derivatives bring risks.

The growth of USDe has a secret. It combines stablecoin issuance with yield loops in DeFi. Aave, Pendle, and other protocols are key. They enable recursive lending. Big players are reaping juicy returns.