Ethena expands delta-neutral strategy from crypto into stock perpetual futures

Ethena announced it will expand its delta-neutral strategy beyond crypto and into stock perpetual futures, according to Crypto Briefing. Ethena said stock perpetual futures, which are currently showing high funding rates, are expected to overtake crypto within the next one to two years as the main yield source for USDe, while the project is also diversifying collateral to reduce the risk of relying on a single funding rate for returns. Ethena said when users deposit collateral and mint USDe, it buys a matching amount of spot crypto and builds an equivalent one-times short futures position. As futures markets typically require long-position holders to pay funding fees to short-position holders, the structure allows Ethena to earn funding-fee income while limiting exposure to price swings through spot holdings and a one-times short position. Ethena said it also generates revenue from funding fees and staking yield, distributes part of that income to USDe depositors, and keeps the rest as profit. The company previously announced, as part of a recent ecosystem restructuring plan, that it would use 95% of revenue for ENA buybacks.