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Ethena review 2026
TL;DR
Ethena is a synthetic dollar protocol around USDe. After the KelpDAO exploit on 18 April 2026 the USDe supply fell from $5.9B to $3.9B (-$1.6B), then recovered to $4.51B by end of May. sUSDe yields compressed to ~4% APY (half of 2024 levels). Headline May events: USDe live on Solana (Jupiter Lend and Kamino, 13 May, $1B+ TVL in the first days) and a Coinbase investment on 2 June ahead of a savings product for 100M users.
Go to EthenaWhat is Ethena
Ethena is a synthetic dollar protocol launched in 2023 by Guy Young (formerly Cerberus Capital). USDe holds its $1 peg through a delta-neutral strategy: the protocol holds ETH/BTC as collateral and opens shorts on perp exchanges. Yield comes from collateral staking rewards and the funding rate on those short positions.
April-May 2026 was a turbulent quarter. On 18-20 April the KelpDAO hack triggered a $1.6B outflow from USDe (supply $5.9B → $3.9B), and Ethena temporarily paused its LayerZero OFT bridges. Ethena had no direct rsETH exposure. By end of May the supply recovered to $4.51B (+15.6% off the lows). sUSDe yield in May, on a 30-day trailing basis, averaged around 4% APY – half of 2024 (~18%) and below 2025 (~5-15%), driven by funding rate compression.
Key events: on 7 May Grayscale added ENA to its DeFi fund at a 13.59% weight. On 13-14 May USDe launched on Solana (Jupiter Lend and Kamino) – $1B+ TVL in the first days, with ENA as an OFT token on Solana. Between 4 and 11 May a $622M token unlock cleared. On 2 June Coinbase invested in Ethena ahead of a savings product for 100M users.
USDtb (an RWA stablecoin backed via Securitize) generated $2.4M of interest income in May and now covers 15-17% of the protocol's liquid collateral. iUSDe (the institutional variant) launched without public April-May numbers.
Supported networks
Pros and cons
Pros
- +USDe live on Solana (Jupiter Lend and Kamino) since 13 May 2026 – $1B+ in the first days
- +Coinbase invested 2 June for a savings product targeting 100M users
- +Audits from Zellic, Spearbit, Quantstamp, Cantina
- +USDtb backed via Securitize – already $2.4M in May income
- +$62.5M insurance fund (22x cover of current risk)
Cons
- –USDe supply dropped $1.6B after the KelpDAO exploit (18 April 2026)
- –sUSDe yield compressed to ~4% (half of 2024)
- –ENA is -94% from its $1.52 ATH, trading near $0.087
- –Reliance on centralized exchanges for hedge positions
- –Not FDIC-insured – USDe is not a bank deposit
Fees
USDe mint and redeem: no protocol fees (only network gas). sUSDe staking: no fees. Ethena earns on the spread between the strategy's yield and the rate it pays sUSDe holders.
Security
Ethena was audited by Zellic, Spearbit, Quantstamp, Cantina, and Code4rena – no critical findings. April-May 2026 had no direct KelpDAO exposure, but the $1.6B outflow shock hit liquidity. The team paused LayerZero OFT bridges as a defensive move. Collateral sits at institutional custodians (Copper, Ceffu, Fireblocks). The $62.5M insurance fund offers 22x cover against current risk. The $1 peg held through April-May without dislocation.
Who it's for
Ethena fits people who want more yield on stablecoins than USDC or USDT offer. If ~4% with moderate DeFi risk works for you, sUSDe is a reasonable allocation for part of a portfolio. Solana users gained native access on 13 May through Jupiter Lend and Kamino without bridging.
FAQ
How did Ethena survive the KelpDAO exploit?
No direct rsETH exposure. But USDe supply dropped $1.6B (from $5.9B to $3.9B) on the broader DeFi outflow. The team paused LayerZero OFT bridges as a precaution. By end of May the supply recovered to $4.51B.
What is the sUSDe yield right now?
On a 30-day trailing basis in May it averaged around 4% APY. That is half of 2024 (~18%) and below 2025 (~5-15%). The cause is funding rate compression on perp exchanges.
Did USDe arrive on Solana?
Yes, on 13-14 May 2026. Launched on Jupiter Lend and Kamino with $1B+ TVL in the first days. ENA works as an OFT token on Solana. This is the first time USDe is available on a non-EVM chain without a separate bridge.
What does the Coinbase investment mean?
On 2 June 2026 Coinbase invested in Ethena ahead of a savings product for 100M users. The signal is that Coinbase sees USDe as a base yield asset for retail. Product details are not public yet.
Can USDe lose its peg?
In theory yes, if funding goes strongly negative for an extended period. The $62.5M insurance fund covers 22x current risk. The peg held through all of 2026 so far, including the KelpDAO shock.
CoinMagnetic Team
Crypto investors since 2017. We trade with our own money and test every exchange ourselves.
Updated: July 2026
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