Ethereal Exchange has put forward a unique proposal to Ethena governance in hopes of gaining approval for the integration of a new spot and perpetual exchange. This exchange will be built on USDe and fully integrated into the Ethena hedging engine and liquidity. Ethereal aims to provide a fully onchain venue for managing spot and derivative positions backing USDe, ultimately increasing demand for the currency.
To align the interests of both communities, Ethereal has offered a 15% allocation of any future Ethereal governance token to circulating ENA holders. This collaboration between Ethena and Ethereal stakeholders will further strengthen the integration and ensure shared benefits.
The upcoming Ethereal V1, set to launch its testnet in Q4, will be implemented as an L3 EVM appchain on the Ethena Network. With its advanced architecture capable of processing 1 million operations per second and boasting sub-20ms latency, Ethereal aims to match the performance of centralized exchanges while maintaining complete self-custody and supporting various features like cross-margin and portfolio margin.
By integrating with Ethereal, the Ethena ecosystem stands to gain numerous advantages, including improved decentralization, increased demand for USDe, and the establishment of a precedent for other applications built using USDe on the Ethena Network.
To move forward with the integration, Ethereal is seeking the support of the Ethena community, particularly in executing hedging transactions. This support is contingent upon satisfactory technical due diligence conducted by the Ethena Foundation and Risk Committee. Furthermore, Ethereal is looking for technical assistance from the community to deploy onto the Ethena Network and implement an integration with Ethena’s hedging engine.
The proposal is set to undergo a voting process, and the Ethena community members are encouraged to participate in discussions on the governance forum to ensure their voices are heard.