A groundbreaking proposal just hit Ethena governance, which is going to change the game in DeFi. Ethereal Exchange is proposing to the community to get approval to deliver a leading-edge spot and perpetual exchange pitched on USDe and integrated into Ethena’s ecosystem.
The proposal was revealed just hours ago on the Ethena governance forum. It details the Ethereal vision for a completely on-chain venue designed to enhance USDe utility. Additionally, it will improve the Ethena reserve management capabilities. Ethereal has pledged an aligned incentive of a 15% allocation of any future Ethereal governance token to circulate to ENA holders in the case of a passing proposal.
Innovative technology behind Ethereal’s app chain
At the core of Ethereal’s value proposition is an L3 EVM appchain settling to the Ethena Network, which promises performance akin to a centralized exchange with the advantages of self-custody. Its technical specifications are a 1 million operations-per-second capacity with sub-20ms latency.
Such a move will advantage both parties in several ways. To begin with, integration with Ethereal can drive high demand for USDe. This is likely making it one of the most liquid and cost-efficient venues of blockchain-based trading. Second, on-chain fallback management will fall in line with Ethena’s commitment to decentralization and complete transparency.
The Ethereal team boasts a lot of experience, with contributors on its roster hailing from high-profile web2, web3, and traditional finance companies. Everything from contributions to top DEX protocols surrounds them with credibility in their ambitious late plans.
The proposal is a point of inflection for Ethena, accelerating its evolution from a pure asset issuer to a financial innovation platform. While the community waits for a snapshot release to begin voting, the crypto world holds its breath. This collaboration might set a new bar within the DeFi universe.
