SIP-392: Support Ethena USDe as LP Collateral

Matt, DSacks
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Simple Summary

This SIP proposes to add Ethena's USDe as LP collateral to Synthetix V3 on Arbitrum.


Add USDe as a supported collateral type for Arbitrum V3 deployment with issuance at 200% C-ratio and a maximum LP cap of $50M.


Ethena imports basis yield from centralized exchanges by holding ETH and LST's with offsetting short positions in ETH perpetual futures market, with the bulk of the yield distributed to sUSDe holders (currently earning ~30%+ APR so far this year). Yield bearing collateral can drastically improve the capital efficiency of providing liquidity to markets on Synthetix V3 and sUSDe presents an attractive option to fulfill this need. USDe holders do not receive any of the yield, but do receive points via a sats campaign. This entitles users to receive ENA tokens. It is important that Synthetix supports both programs so users are given optionality while we can increase capital efficiency of providing liquidity to markets on Synthetix Perps and scale the LP collateral.

A discussion on the various risk factors and considerations associated with Ethena and USDe can be found here.

Technical Specification

Implementation of this SIP will be contingent on the availability of a USDe price oracle on Arbitrum via Pyth Network

Configurable Values (Via SCCP)

USDE LP Values

  • Maximum LP amount: $50M
  • Issuance Ratio: 200%
  • Liquidation Ratio: 105%

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